NEWARK, Calif., Feb. 15, 2017 /PRNewswire/ -- Socket Mobile,
Inc. (NASDAQ: SCKT), a leading innovator of data capture and
delivery solutions for enhanced productivity, today reported
profitable operating results for the fourth quarter and full year
ended December 31, 2016.
Full Year 2016 Financial Results
- Revenue was $20.8 million in
2016, a 13.0% increase compared to $18.4
million in 2015.
- Gross margins were $10.4 million
in 2016, a 16.8% increase compared to $8.9
million in 2015. Margins increased to 50.2% of revenue in
2016 compared to 48.6% of revenue in 2015.
- Operating expenses were $7.9
million, an increase of 15.7% compared $6.8 million in 2015.
- Net income before income taxes at 12/31/2016 was $2.43
million, or $0.36 per fully
diluted share, compared to net income before income taxes of
$1.85 million, or $0.31 per fully diluted share in 2015. Net income
for 2016 includes a deferred tax benefit of $9.7 million, increasing 2016 net income to
$12.1 million or $1.80 per fully diluted share, related to release
of a full valuation allowance for deferred taxes as of the end of
the year and adding net deferred tax assets to the balance sheet as
of December 31, 2016., compared to
net income of $1.82 million or
$0.31 per fully diluted share in
2015.
Fourth Quarter 2016 Financial Results
- Revenue was $5.43 million in Q4
2016, a 1% increase compared to $5.39
million for Q4 2015.
- Gross margins were $2.7 million
in Q4 2016, a reduction of 2% compared to $2.8 million in Q4 2015. Margins decreased to
50.1% of revenue in Q4 2016 compared to 51.5% of revenue for the
same quarter a year ago.
- Q4 2016 operating expenses were $2.05
million, a 17.1% increase compared to $1.75 million for the same quarter a year
ago.
- Net income before income taxes for the quarter ended
12/31/2016 was $637,000, or $0.09
per fully diluted share, compared to net income before income taxes
of $966,000, or $0.16 per fully diluted share in Q4 2015. Net
income for Q4 2016 includes a deferred tax benefit of $9.8 million, increasing Q4 2016 net income to
$1.40 per fully diluted share,
related to release of a full valuation allowance for deferred taxes
as of the end of the year and adding net deferred tax assets to the
balance sheet as of December 31,
2016, compared to net income of $958,000 or $0.16
per fully diluted share in Q4 2015.
Kevin Mills, president and chief
executive officer, commented, "In 2016 we achieved continued
profitable growth, including record operating profit, and we
significantly strengthened our balance sheet. As a further
indicator of the underlying strength of our business, we have
restored deferred taxes to our balance sheet as of year-end. 2016
is our third consecutive profitable year and we believe that the
strength of our business will enable us to realize the benefit of
our deferred tax asset balances from future profitability including
from our net operating loss carryforwards.
"Mobile point of sale (mPOS) applications continue to be the
primary driver of our barcode scanning sales, but we are also
seeing our application developers focus more on areas outside of
mPOS, including Manufacturing, Field Service, and Transportation.
These are emerging growth areas for Socket as investments in
smartphones and tablets used in line-of-business applications are
gaining traction and growing year over year. In 2016, our
cordless barcode scanning business continued to be driven by growth
in mobile business applications running on Apple, Android and
Windows-based smartphones and tablets, and we expect this trend to
continue. These applications are developed by registered third
party developers using our software developer kit to integrate our
products into their applications to solve a business problem or
improve a business process. We continue to attract new mobile
application developers worldwide.
"Operating expenses increases of 15.7% in 2016 reflect costs of
expanding our new product development program and additional
investment in personnel as we prepare for growth.
"During the year we expanded our product line with a new family
of products that strengthen our offerings in non-mPOS markets. This
includes our DuraScan™ rugged barcode scanners designed for use
with smartphones and tablets that have a weatherproof IP54 rating
and level of durability and usability to match the demands of these
markets. We also introduced our DuraCase solution that securely
attaches our attachable barcode scanners to a smartphone or iPod as
a one-handed, dedicated barcode scanning solution, ideal for many
inventory based applications. We will be expanding the availability
of DuraCase to additional Apple and Android Smartphones this year.
We are pleased with the strong market reception to these new
products and expect them to be revenue growth drivers in 2017.
"This year we also plan to introduce our D600 contactless
reader/writer to facilitate the use of NFC and other contactless
technology in business applications. With this product, Socket
Mobile will be enabling our many developers to expand beyond
barcode reading and serve the need for mobile reading of
contactless tickets and other contactless systems. While it will
take time for our developers to build this capability into their
applications, we expect these products to become contributors to
our revenue growth starting in 2018.
"Our primary goals for 2017 are to continue to attract and
support mobile application developers with data collection products
designed for the mobile markets they serve and to achieve continued
growth and profitability," Mills concluded.
Conference Call
Management of Socket Mobile will hold a conference call and web
cast today at 2 P.M. Pacific (5
P.M. Eastern) to discuss the
quarterly results and outlook for the future. The dial-in
number to access the call is (888) 424-8151passcode 8483007. From
international locations, obtain the local dial-in number through
your web browser at
http://web.meetme.net/r.aspx?p=11&ca=UDXGtuoxHGxsKp. A
live and replay audio webcast of the conference call can be
accessed through a link on Socket Mobile's website at
www.socketmobile.com. From the home page, select "About
Socket"/"Investor Relations"/ and "Conference Calls and
Events."
About Socket Mobile,
Inc.
Founded in 1992, Socket Mobile is a leading innovator of data
capture and delivery solutions for enhanced productivity in retail
point of sale, field service, transportation, manufacturing and
other mobile markets. 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. Socket Mobile has a robust network of thousands of
developers registered to use its software developer's kit to add
sophisticated barcode scanning to 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 is a registered trademark of Socket Mobile,
Inc. Registration is pending for the trademark DuraScan. All
other trademarks and trade names contained herein may be those of
their respective owners. © 2017 Socket Mobile, Inc. All
rights reserved.
Investor Relations
Contact:
|
Socket Mobile
Contact:
|
Todd Kehrli or Jim
Byers
|
David
Dunlap
|
MKR Group,
Inc.
|
Chief Financial
Officer
|
323/468-2300
|
510/933-3035
|
sckt@mkr-group.com
|
dave@socketmobile.com
|
– Financial tables to follow –
Socket Mobile,
Inc.
Condensed Summary Statements of Operations
(Amounts in thousands except per share amounts)
|
|
|
Year ended
Dec 31,
|
Three Months
ended
Dec 31,
|
|
(Unaudited)
2016
|
2015*
|
(Unaudited)
2016
|
2015*
|
Revenue
|
$
20,788
|
$
18,400
|
$
5,430
|
$
5,391
|
Cost of
revenue
|
10,354
|
9,465
|
2,711
|
2,617
|
Gross
profit
|
10,434
|
8,935
|
2,719
|
2,774
|
Gross
profit percent
|
50%
|
49%
|
50%
|
51%
|
Research and
development
|
2,889
|
2,323
|
787
|
621
|
Sales and
marketing
|
2,775
|
2,497
|
711
|
660
|
General and
administrative
|
2,207
|
1,986
|
555
|
466
|
Total operating
expenses
|
7,871
|
6,806
|
2,053
|
1,747
|
Interest expense,
net
|
(131)
|
(279)
|
(29)
|
(61)
|
Net income before
income taxes
|
2,432
|
1,850
|
637
|
966
|
Net income tax
benefit (expense)
|
9,715
|
(32)
|
9,776
|
(8)
|
Net income
|
$
12,147
|
$
1,818
|
$
10,413
|
$
958
|
Net income per
share:
Basic
Fully diluted
|
$ 2.10
$ 1.80
|
$ 0.33
$ 0.31
|
$ 1.78
$ 1.40
|
$ 0.17
$ 0.16
|
Weighted average
shares outstanding:
Basic
Fully diluted
|
5,793
6,820
|
5,555
5,906
|
5,863
7,437
|
5,598
6,373
|
|
*Derived from audited
financial statements.
|
Socket Mobile,
Inc.
Condensed Summary Balance Sheets
(Amounts in Thousands)
|
|
|
December
31,
|
|
(Unaudited)
2016
|
2015*
|
Cash
|
$
1,319
|
$
938
|
Accounts
receivable
|
2,867
|
2,359
|
Inventories
|
1,537
|
1,326
|
Other current
assets
|
260
|
87
|
Deferred tax
assets
|
9,589
|
--
|
Property and
equipment, net
|
564
|
475
|
Goodwill
|
4,427
|
4,427
|
Other
assets
|
76
|
76
|
Total
Assets
|
$
20,639
|
$
9,688
|
Accounts payable and
accrued liabilities
|
$
2,214
|
$
2,817
|
Subordinated line of
credit
|
--
|
500
|
Convertible notes
payable
|
753
|
753
|
Net deferred revenue
on shipments to distributors
|
1,063
|
1,004
|
Customer
deposit
|
--
|
641
|
Deferred service
revenue
|
73
|
125
|
Other
liabilities
|
366
|
505
|
Common
stock
|
62,896
|
62,216
|
Accumulated
deficit
|
(46,726)
|
(58,873)
|
Total Liabilities and
Equity
|
$
20,639
|
$
9,688
|
|
*Derived from audited
financial statements.
|
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SOURCE Socket Mobile, Inc.