NEWARK, Calif., Oct. 24, 2019 /PRNewswire/ -- Socket Mobile, Inc.
(NASDAQ: SCKT), a leading innovator of data capture and delivery
solutions for enhanced productivity, today reported financial
results for its 2019 third quarter and nine months ended
September 30, 2019.
Revenue for the third quarter of 2019 was $5.0 million, an increase of 20 percent compared
to revenue of $4.1 million for the
same quarter a year ago. Cordless barcode scanner revenue was
$4.8 million for the third quarter of
2019, an increase of 17 percent over the same quarter a year ago.
Net income for the third quarter of 2019 was $94,000 or $0.01
per share, compared to a net loss of $45,000 or $0.01
per share a year ago.
Gross profit margins for the third quarter of 2019 were 52.9
percent, compared to margins of 52.6 percent for the third quarter
a year ago.
Operating expenses for the third quarter of 2019 were
$2.5 million compared to operating
expenses of $2.2 million for the same
quarter a year ago, representing an increase in operating expenses
of 14 percent.
For the nine months ended September 30,
2019, revenue was $14.7
million, an increase of 19 percent compared to revenue of
$12.3 million for the same period a
year ago. Net income for the nine months ended September 30, 2019 was $0.2 million or $0.04 per share compared to a net loss of
$0.4 million or $0.07 per share in the year ago period.
Gross profit margins for the nine months ended September 30, 2019 were 52.3 percent, compared to
51.8 percent for the same period in 2018. Operating expenses for
the nine months ended September 30,
2019 were $7.3 million, an
increase of 6 percent compared to operating expenses of
$6.8 million in the same period a
year ago.
Cash and cash equivalents were $0.9
million at September 30, 2019
compared to $1.1 million at
December 31, 2018. Stockholders'
Equity at September 30, 2019 was
$13.0 million compared to
$12.4 million at December 31, 2018.
Kevin Mills, president and chief
executive officer, commented, "We are pleased with both our quarter
over quarter and year over year growth rate of approximately 20%
and the general underlying strength of our business. Our growth in
Q3 was helped by increased sales in Japan, where a Japanese government program,
which subsidized retail system upgrades, ended in Q3. Systems
ordered under this program must be delivered by December 2019. Sales in the EMEA region were also
stronger, which resulted in our total international revenue being
34% of our Q3 revenue.
"Our growth continues to be driven by the development and
deployment pace of our registered developers who integrate our
barcode scanning capabilities into their applications. We will
continue to promote our Capture SDK with the use of developer tools
and provide responsive support to our growing developer community
as needed.
"Profitable growth has strengthened our balance sheet and
provided the working capital we need to support future growth," Mr.
Mills
concluded.
Conference Call
Management of Socket Mobile will hold
a conference call and webcast today at 2
PM Pacific (5 PM Eastern) to
discuss the quarterly results and outlook for the future. The
dial-in number to access the call from the U.S. is (888) 424-8151
using passcode 9022984. From international locations, obtain the
local dial-in number through your web browser
at http://web.meetme.net/r.aspx?p=11&a=UHJRZjYQMtcbJz
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 "Investor
Relations"/ and "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,
Twitter @socketmobile and on our sockettalk 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 Mobile Investor Contact:
Lynn Zhao
Chief Financial Officer
510-933-3016
lynn@socketmobile.com
Socket is a registered trademark of Socket Mobile. All
other trademarks and trade names contained herein may be those of
their respective owners.
© 2019, Socket Mobile, Inc. All rights reserved.
– Financial tables to follow –
Socket Mobile,
Inc.
|
Summary Statements
of Operations (Unaudited)
|
(Amounts in
Thousands)
|
|
|
Three months ended
Sept 30,
|
Nine months ended
Sept 30,
|
|
2019
|
2018
|
2019
|
2018
|
Revenue
|
$ 4,980
|
$ 4,137
|
$ 14,668
|
$ 12,310
|
Cost of
revenue
|
2,344
|
1,960
|
7,003
|
5,937
|
Gross
profit
|
2,636
|
2,177
|
7,665
|
6,373
|
Gross
profit percent
|
52.9%
|
52.6%
|
52.3%
|
51.8%
|
Research and
development
|
1,015
|
885
|
2,906
|
2,749
|
Sales and
marketing
|
785
|
739
|
2,312
|
2,211
|
General and
administrative
|
707
|
584
|
2,053
|
1,873
|
Total
operating expenses
|
2,507
|
2,208
|
7,271
|
6,833
|
Operating income
(loss)
|
129
|
(31)
|
394
|
(460)
|
Interest expense,
net
|
25
|
32
|
83
|
100
|
Net income (loss)
before income taxes
|
104
|
(63)
|
311
|
(560)
|
Income taxes -
current
|
0
|
0
|
0
|
0
|
Income tax expense
(benefit)
|
10
|
(18)
|
85
|
(152)
|
Net income
(loss)
|
$
94
|
$
(45)
|
$
226
|
$
(408)
|
Net income (loss) per
share:
|
|
|
|
|
Basic
|
$
0.02
|
$
(0.01)
|
$
0.04
|
$
(0.07)
|
Fully
Diluted
|
$
0.01
|
$
(0.01)
|
$
0.04
|
$
(0.07)
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
Basic
|
5,999
|
5,883
|
5,980
|
6,166
|
Diluted
|
6,317
|
5,883
|
6,237
|
6,166
|
Socket Mobile,
Inc.
|
Condensed Summary
Balance Sheets
|
(Amounts in
Thousands)
|
|
|
September 30,
2019
(Unaudited)
|
December 31,
2018*
|
Cash
|
$
881
|
$
1,085
|
Accounts receivable,
net
|
3,062
|
2,367
|
Inventories,
net
|
2,528
|
2,272
|
Deferred cost on
shipments to distributors
|
258
|
165
|
Other current
assets
|
405
|
308
|
Property and
equipment, net
|
817
|
689
|
Goodwill
|
4,427
|
4,427
|
Deferred tax
assets
|
5,669
|
5,781
|
Operating leases
capitalized
|
1,021
|
1,266
|
Other
assets
|
214
|
237
|
Total
assets
|
$
19,282
|
$
18,597
|
Accounts payable and
accrued liabilities
|
$
2,425
|
$
2,046
|
Bank line of
credit
|
1,429
|
1,317
|
Term loan
|
458
|
833
|
Deferred revenue on
shipments to distributors
|
622
|
397
|
Deferred service
revenue
|
80
|
65
|
Operating lease
liabilities
|
1,233
|
1,511
|
Other
liabilities
|
12
|
23
|
Total
liabilities
|
6,259
|
6,192
|
Common stock and
additional paid-in capital
|
60,922
|
60,530
|
Accumulated
deficit
|
(47,899)
|
(48,125)
|
Total stockholders'
equity
|
13,023
|
12,405
|
Total liabilities and
equity
|
$
19,282
|
$
18,597
|
*Derived from audited
financial statements.
|
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SOURCE Socket Mobile, Inc.