SCKT Socket Mobile Inc

NEWARK, Calif., Oct. 25, 2018 /PRNewswire/ -- Socket Mobile, Inc. (NASDAQ: SCKT), a leading innovator of data capture and delivery solutions for enhanced productivity, today reported financial results for its 2018 third quarter and nine months ended September 30, 2018.

Revenue for the third quarter of 2018 was $4.1 million, a decrease of 24 percent compared to revenue of $5.5 million for the same quarter a year ago. Cordless barcode scanner revenue was $4.1 million for the third quarter of 2018, a decrease of 19 percent over the same quarter a year ago. Net loss for the third quarter of 2018 was $45,000 or a loss of $0.01 per share, compared to net income of $414,000, or $0.07 per share a year ago.

Gross profit margins for the third quarter of 2018 were 52.6 percent, compared to margins of 55.6 percent for the third quarter a year ago. Non-cordless products and services in the third quarter of 2017 increased quarterly margins by 2.0 percent.

Operating expenses for the third quarter of 2018 were $2.2 million compared to operating expenses of $2.3 million for the same quarter a year ago, representing a reduction in operating expenses of 3 percent.

For the nine months ended September 30, 2018, revenue was $12.3 million, a decrease of 27 percent compared to revenue of $16.9 million for the same period a year ago. Nine month cordless barcode scanner revenue was $12.1 million in 2018 compared to $16.3 million in 2017, a year over year decrease of 26 percent. Net loss for the nine months ended September 30, 2018 was $0.4 million or $0.07 per share compared to net income of $1.3 million or $0.19 per fully diluted share in the year ago period.

Gross profit margins for the nine months ended September 30, 2018 were 51.8 percent, down from margins of 53.7 percent for the same period in 2017. Operating expenses for the nine months ended September 30, 2018 were $6.8 million, a moderate increase compared to operating expenses of $6.7 million in the same period a year ago.

Cash and cash equivalents were $1.3 million at September 30, 2018 compared to $3.4 million at December 31, 2017. The Company's current ratio (current assets divided by current liabilities) at September 30, 2018 was 1.4 compared to a current ratio of 3.8 at December 31, 2017. Stockholders' Equity at September 30, 2018 was $12.4 million compared to $17.2 million at December 31, 2017. The Company repurchased and retired 1.25 million shares of its common stock for $4.9 million in March 2018. 

Kevin Mills, president and chief executive officer, commented, "Our Q3 results were impacted by our ongoing product transition, despite the extremely positive feedback we are receiving on our new SocketScan products. Most of our application partners have completed their evaluations and are in the process of changing guidance to their customers to purchase our newest products, but in many cases the new information has not yet made it to their end users. We expect to complete the transition during Q4.

Our S740, our newest and most affordable 2D scanner, was the highlight of the quarter and bucked the trend with over 60% of new 2D scanner orders being for this new and improved version. In addition to our hardware transition we have also transitioned our Software Development Kits. I'm pleased to report that this transition has gone well and our development partners have provided very positive feedback about the improvements. We saw good engagement by our registered application developers in Q3 and have now over 750 Socket Mobile enabled Applications in the Apple App Store. We are also seeing good interest from the Android community.

It is clear from our experience during 2018 that our community is slow to adopt product transitions. The good news is that we will complete the transition before the end of the year and will have moved our customers to a substantially improved product platform that we expect to be a primary platform for the next 4 to 5 years," Mills concluded.

Conference Call
Management of Socket Mobile will hold a conference call and audio web cast today at 2 PM Pacific (5 PM Eastern) to discuss the quarterly results and outlook for the future. The dial-in number for live access to the call is (888) 424-8151 from within the U.S. Passcode is 6765857. From international locations you may obtain a local dial-in number through your web browser at http://web.meetme.net/r.aspx?p=11&a=UaflAVLzIYcWLi.  The call will also be carried live and will be available via replay for one year through a link on Socket Mobile's website at www.socketmobile.com. From the home page, choose "About Us"/"Investor Relations"/"Conference Calls and Events." 

About Socket Mobile, Inc. 
Socket Mobile is a leading provider of data capture and delivery solutions for enhanced productivity in workforce mobilization. Socket Mobile's revenue is primarily driven by the deployment of third party barcode enabled mobile applications that integrate Socket Mobile's cordless barcode scanners and contactless reader/writers. Mobile Applications servicing the specialty retailer, field service, transportation, and manufacturing markets are the primary revenue drivers. Socket Mobile has a network of thousands of developers who use its software developer tools to add sophisticated data capture to their mobile applications. Socket Mobile is headquartered in Newark, Calif. and can be reached at +1-510-933-3000 or www.socketmobile.com. Follow Socket Mobile on Facebook and Twitter @socketmobile and subscribe to SocketTalk  the company's official blog.

Forward-Looking Statements 
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Such forward-looking statements include, but are not limited to, statements regarding new mobile computer and data collection products, including details on the timing, distribution and market acceptance of the products, and statements predicting trends, sales and market conditions and opportunities in the markets in which we sell our products.  Such statements involve risks and uncertainties, and actual results could differ materially from the results anticipated in such forward-looking statements as a result of a number of factors, including, but not limited to, the risk that our new products may be delayed or not rollout as predicted, if ever, due to technological, market, or financial factors, including the availability of necessary working capital, the risk that market acceptance and sales opportunities may not happen as anticipated, the risk that our application partners and current distribution channels may choose not to distribute the new products or may not be successful in doing so, the risk that acceptance of our new products in vertical application markets may not happen as anticipated, and other risks described in our most recent Form 10-K and 10-Q reports filed with the Securities and Exchange Commission.

Socket, DuraScan and SocketScan are trademarks or registered trademarks of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective owners. © 2018, Socket Mobile, Inc. All rights reserved.

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SOURCE Socket Mobile, Inc.