NEWARK, Calif., Feb. 24, 2021 /PRNewswire/ -- Socket Mobile, Inc.
(NASDAQ: SCKT), a leading innovator of data capture and delivery
solutions for enhanced workplace
productivity, today reported financial results for the
fourth quarter and year ended December 31,
2020.
The 2020 fourth quarter revenue was $4.7
million compared to $4.6
million in the fourth quarter of 2019. Gross margin from the
fourth quarter of 2020 was 53.2 percent compared to 53.1 percent
from the same period in 2019. Operating expenses for the fourth
quarter decreased 12.4 percent to $1.9
million, compared to $2.2
million in fourth quarter of 2019. Net income attributable
to common shareholders for the fourth quarter of 2020 was
$1.6 million, or $0.26 per basic and $0.23 per fully diluted share, compared to a net
income of $0.06 million or 0.01 per
basic and fully diluted share for the same period last year. Net
income for the fourth quarter 2020 includes a one-time non-cash
gain upon debt extinguishment of $1.1
million related to the loan forgiveness under the Paycheck
Protection Program (PPP).
Revenue for the full year of 2020 was $15.7 million compared to $19.3 million in 2019. Gross margin for 2020 was
53.1 percent compared to 52.5 percent in 2019. Operating results in
2020 were a net loss of $0.54 per
basic and fully diluted share or $3.3
million, which includes a non-cash goodwill impairment
charge of $4.4 million and a non-cash
gain upon debt extinguishment of $1.1
million related to the forgiveness of the Company's PPP
loan, compared to a net income of $0.05 per basic and fully diluted share or
$0.3 million in 2019.
As of December 31, 2020, cash more
than doubled from December 31, 2019
to $2.1 million which resulted from
improved operational performance and the secured subordinated
convertible note financing completed in August 2020. Loans payable decreased to
$1.4 million from $1.7 million. Shareholders' equity on
December 31, 2020 decreased by
$2.6 million from December 31, 2019 to $10.6
million primarily due to the non-cash goodwill impairment
charge of $4.4 million.
Kevin Mills, president and chief
executive officer, commented, "Our fourth quarter was another
encouraging period in which revenue continued on its upward
trajectory from the 2020 low point in the second quarter. We also
improved liquidity with increased cash and reduced debts.
"Throughout 2020, we managed our costs while investing into our
businesses and developing and launching new products. We introduced
DuraScan D755, a medical-grade, universal scanner designed and
built for healthcare environments. We also launched DuraSled for
XCover Pro and iPhone SE 2020, a one-handed solution that combines
the iPhone or Android devices with a scanner. We delivered S550
Contactless Reader/Writer that is certified with both Apple Pay
"VAS" and Google Wallet, and that complies with Apple and Google
NFC protocol on iPhones and Android devices. Our products continue
to be well-received by our customers.
"We believe our performance demonstrates the strength inherent
in our operations and testifies to the resilience of our
enterprise. I want to thank all of our employees for their
extraordinary efforts to support our customers under these
challenging conditions.
"Despite the vaccine rollout, the COVID-19 pandemic continues to
impact economic activity worldwide in 2021. We will continue to
manage the risks while safely pursuing opportunities in the
COVID-19 environment. Our primary goals for 2021 continue to be
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
7255 653. From international locations, obtain the local dial-in
number through your web browser at
http://web.meetme.net/r.aspx?p=11&a=UJBwvpKMZQnYJf.
A live and replay audio webcast of the conference call can be
accessed through a link
https://onlinexperiences.com/Launch/QReg/ShowUUID=8D3A8A23-06CB-4873-B36F-93A4A913B65A&LangLocaleID=1033.
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.
© 2021, 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)
2020
|
2019*
|
(Unaudited)
2020
|
2019*
|
Revenue
|
$
15,700
|
$
19,253
|
$
4,655
|
$
4,584
|
Cost of
revenue
|
7,365
|
9,152
|
2,179
|
2,149
|
Gross
profit
|
8,335
|
10,101
|
2,476
|
2,435
|
Gross
profit percent
|
53.1%
|
52.5%
|
53.2%
|
53.1%
|
Research and
development
|
3,140
|
3,894
|
719
|
987
|
Sales and
marketing
|
2,849
|
3,015
|
700
|
703
|
General and
administrative
|
2,270
|
2,585
|
529
|
533
|
Goodwill impairment
charges
|
4,427
|
--
|
--
|
--
|
Total operating
expenses
|
12,686
|
9,494
|
1,948
|
2,223
|
Extinguishment of
debt income and other income
|
1,119
|
--
|
1,049
|
--
|
Interest income
(expense), net
|
(98)
|
(101)
|
(46)
|
(17)
|
Net income (loss)
before income taxes
|
(3,330)
|
506
|
1,531
|
195
|
Income tax (expense)
benefit
|
51
|
(219)
|
52
|
(134)
|
Net income
(loss)
|
$
(3,279)
|
$
287
|
$
1,583
|
$
61
|
Net income (loss) per
share:
Basic
Fully Diluted
|
$
(0.54)
$
(0.54)
|
$
0.05
$
0.05
|
$ 0.26
$ 0.23
|
$ 0.01
$ 0.01
|
Weighted average
shares outstanding:
Basic
Fully Diluted
|
6,036
6,036
|
5,985
6,208
|
6,084
7,033
|
5,998
6,156
|
*Derived from audited
financial statements.
|
Socket Mobile,
Inc.
Condensed Summary
Balance Sheets
(Amounts in
Thousands)
|
|
|
December
31,
|
|
(Unaudited)
2020
|
2019*
|
Cash
|
$
2,122
|
$
959
|
Accounts
receivable
|
2,113
|
2,837
|
Inventories
|
3,196
|
3,179
|
Deferred costs on
shipments to distributors
|
170
|
234
|
Other current
assets
|
335
|
312
|
Property and
equipment, net
|
848
|
864
|
Goodwill
|
--
|
4,427
|
Deferred tax
assets
|
5,507
|
5,507
|
Operating leases
right-of-use assets
|
609
|
937
|
Other long-term
assets
|
159
|
202
|
Total
assets
|
$
15,059
|
$
19,458
|
Accounts payable and
accrued liabilities
|
$
1,748
|
$
2,651
|
Bank line of
credit
|
--
|
1,413
|
Notes
payable
|
--
|
333
|
Subordinated
convertible notes payable, net of discount
|
170
|
--
|
Subordinated
convertible notes payable, net of discount-related party
|
1,272
|
--
|
Deferred revenue on
shipments to distributors
|
451
|
611
|
Deferred service
revenue
|
54
|
74
|
Operating lease
liabilities
|
741
|
1,134
|
Other
liabilities
|
--
|
8
|
Total
liabilities
|
$
4,436
|
$
6,224
|
Common
stock
|
61,740
|
61,073
|
Accumulated
deficit
|
(51,117)
|
(47,839)
|
Total stockholder
equity
|
$
10,623
|
$
13,234
|
Total Liabilities and
Equity
|
$
15,059
|
$
19,458
|
*Derived from audited
financial statements.
|
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SOURCE Socket Mobile, Inc.