NEWARK, Calif., Feb. 12, 2020 /PRNewswire/ -- Socket Mobile, Inc.
(NASDAQ: SCKT), a leading innovator of data capture and delivery
solutions for enhanced productivity, today reported
financial results for the fourth quarter and year ended
December 31, 2019.
Revenue for 2019 was $19.3
million, an increase of 17 percent versus 2018 revenue of
$16.5 million. Gross margins in 2019
were $10.1 million, or 52.5 percent
of revenue, up from $8.5 million, or
51.4 percent of revenue in 2018. Operating expenses were
$9.5 million for 2019 and
$9.0 million in 2018. Operating
results in 2019 were a net income before tax of $0.5 million compared to a net loss before tax of
$0.7 million in 2018. The Company's
net income in 2019 was $0.3 million
or $0.05 per share compared to a net
loss of $0.6 million or $0.09 per share in 2018.
The Company's balance sheet at December
31, 2019 included cash of $1.0
million compared to cash of $1.1
million at December 31, 2018.
The current ratio (current assets divided by current liabilities)
was 1.38 at December 31, 2019
compared to a current ratio of 1.32 at December 31, 2018. Shareholders' equity at
December 31, 2019 was $13.2 million compared to shareholders' equity at
December 31, 2018 of $12.4 million.
Revenue for the fourth quarter of 2019 was $4.6 million, with gross margins of 53.1 percent,
operating expenses of $2.2 million,
and net income before income taxes of $0.2
million. Revenue in the fourth quarter of 2018 was
$4.1 million with gross margins of
50.3%, operating expenses of $2.2
million and net loss before income taxes of $0.2 million. Net income for the fourth quarter
of 2019 was $0.1 million or
$0.01 per share compared to a net
loss for the fourth quarter of 2018 of $0.2
million or $0.03 per share.
Kevin Mills, president and chief
executive officer, commented, "2019 was the turnaround year we
expected in which we returned to profitable growth. Our SocketScan
barcode scanner products are well received and were the foundation
of our growth. Our revenue grew year over year at 17 percent. We
improved our gross margins and kept the operating expenses under
control, enabling us to return to profitability.
"In 2019 we maintained an active product development program to
ensure that we achieve continued growth. We expanded our
product line with a new family of products; DuraSled for the iPhone
models 6,7,8, X and 11. The DuraSled combines the iPhone and a
scanner to make a single-handed solution. The DuraSled both
protects the phones from impact damage and provides a robust
charging solution for all environments. We also redesigned and
retooled our entire DuraScan family of products to better
serve the market.
"We completed the development of S550, our NFC compatible
Contactless Membership Card Reader/Writer and the units are
currently available for the developers. The S550 will enable us to
expand our business into the emerging market for tap-and-go
solutions that have traditionally been limited to payment
solutions, like Apple Pay, but can now be used for ticketing,
access and identification applications.
"Our growth continues to be driven by the deployment of mobile
applications integrated with our barcode scanning capabilities. In
2019, we updated our Capture SDK for iOS 13 and iPadOS 13
compatibility and maintained a track record of 100% compatibility
with all iOS versions. Capture SDK for both Android and Windows are
also available and fully compatible with the latest version. Our
Capture SDK supports all our devices. We will continue promoting
our Capture SDK with the use of developer tools and provide
responsive support to our growing developer community as
needed.
"Our primary goals for 2020 are to continue revenue 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) 424-8151 passcode 7857 219. From
international locations, obtain the local dial-in number through
your web browser at
http://web.meetme.net/r.aspx?p=12&a=UOfVwMzQqfCBsO.
A live and replay audio webcast of the conference call can be
accessed through a link
http://event.onlineseminarsolutions.com/wcc/r/2187248-1/610568111C0939452F424DA04B495C82.
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.
© 2020, Socket Mobile, Inc. All rights reserved.
– 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)
2019
|
2018*
|
(Unaudited)
2019
|
2018*
|
Revenue
|
$
19,253
|
$
16,454
|
$
4,584
|
$
4,144
|
Cost of
revenue
|
9,152
|
7,998
|
2,149
|
2,061
|
Gross
profit
|
10,101
|
8,456
|
2,435
|
2,083
|
Gross
profit percent
|
52.5%
|
51.4%
|
53.1%
|
50.3%
|
Research and
development
|
3,894
|
3,640
|
987
|
892
|
Sales and
marketing
|
3,015
|
2,982
|
703
|
771
|
General and
administrative
|
2,585
|
2,420
|
533
|
546
|
Total operating
expenses
|
9,494
|
9,042
|
2,223
|
2,209
|
Interest income
(expense), net
|
(101)
|
(129)
|
(17)
|
(29)
|
Net income (loss)
before income taxes
|
506
|
(715)
|
195
|
(155)
|
Income tax expense
(benefit)
|
219
|
(144)
|
134
|
8
|
Net income
(loss)
|
$
287
|
$
(571)
|
$
61
|
$
(163)
|
Net income (loss) per
share:
|
|
|
|
|
Basic
|
$
0.05
|
$
(0.09)
|
$
0.01
|
$
(0.03)
|
Fully Diluted
|
$
0.05
|
$
(0.09)
|
$
0.01
|
$
(0.03)
|
Weighted average
shares outstanding:
|
|
|
|
|
Basic
|
5,985
|
6,095
|
5,998
|
5,883
|
Fully Diluted
|
6,208
|
6,095
|
6,156
|
5,883
|
*Derived from audited
financial statements.
|
Socket Mobile,
Inc.
|
Condensed Summary
Balance Sheets
|
(Amounts in
Thousands)
|
|
December
31,
|
|
(Unaudited)
2019
|
2018*
|
Cash
|
$
959
|
$
1,085
|
Accounts
receivable
|
2,837
|
2,367
|
Inventories
|
3,179
|
2,272
|
Deferred costs on
shipments to distributors
|
234
|
165
|
Other current
assets
|
312
|
308
|
Property and
equipment, net
|
864
|
689
|
Goodwill
|
4,427
|
4,427
|
Deferred tax
assets
|
5,507
|
5,781
|
Operating leases
capitalized
|
937
|
1,266
|
Other
assets
|
202
|
237
|
Total
Assets
|
$
19,458
|
$
18,597
|
Accounts payable and
accrued liabilities
|
$
2,651
|
$
2,046
|
Bank line of
credit
|
1,413
|
1,317
|
Term loan
|
333
|
833
|
Deferred revenue on
shipments to distributors
|
611
|
397
|
Deferred service
revenue
|
74
|
65
|
Operating lease
liabilities
|
1,134
|
1,511
|
Other
liabilities
|
8
|
23
|
Total
liabilities
|
$
6,224
|
$
6,192
|
Common
stock
|
61,073
|
60,530
|
Accumulated
deficit
|
(47,839)
|
(48,125)
|
Total stockholder
equity
|
$
13,234
|
$
12,405
|
Total Liabilities and
Equity
|
$
19,458
|
$
18,597
|
*Derived from audited
financial statements.
|
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SOURCE Socket Mobile, Inc.