NEWARK, Calif., April 22, 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
first quarter of 2021.
First Quarter Financial Highlights:
- Revenue for the first quarter of 2021 was $4.8 million, up 14% from $4.2 million in the first quarter of 2020.
- Operating expenses for both the first quarter of 2021 and 2020
were $2.3 million.
- Net income for the first quarter of 2021 was $203,000, or $0.03
per basic and fully diluted share, compared to a net loss of
($90,000), or ($0.01) per basic and fully diluted share, in the
first quarter of 2020.
- Q1 2021 ending cash position of $5.0
million, an increase of $2.8
million from the previous quarter.
"We are off to a strong start to 2021 with continued solid
growth in bookings. The deployments of business applications,
particularly in retail as the economy re-opens, have served as a
key driver of our underlying growth in Q1," said Kevin Mills, president and chief executive
officer. "We are seeing strong demand but are also experiencing
supply chain and logistics issues. Our operations team is taking
every measure to cope with supply interruption and to protect our
supply and margins. We are working hard and remaining focused on
serving our customers, while ensuring we stay safe and
healthy."
"The positive demand trend we are seeing is encouraging as it
validates our application driven business model. We remain focused
on strengthening our application developer tools, meeting the
requirements of our customers with a breadth of products that align
with their needs, and investing in new products to drive long-term
profitable growth.
"In Q1, we entered into a technology transfer agreement with
SpringCard SAS, a market leader in the contactless field. Under the
agreement, we acquired a perpetual, royalty-free license to the
core technology to use in our products and to support new
requirements in the future. Our DuraScan D600 Contactless
Reader/Writer and SocketScan S550 Contactless Reader/Writer include
this core contactless technology. The SocketScan S550 supports both
contactless cards and phone-centric mobile passes. The S500 is
Apple Value Added Services (VAS) and Google Wallet certified for
mobile passes.
"We look forward to providing more details on the key drivers of
our recent performance along with updates on our business and
products during our first quarter earnings call," concluded
Mills.
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=UgMKNZxUkuOKVY. A
live and replay audio webcast of the conference call can be
accessed through a link
https://onlinexperiences.com/Launch/QReg/ShowUUID=DBDC6C8D-EF67-42D9-935C-0CB52CE909DD&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 (Unaudited)
|
|
(Amounts in
thousands except per share amounts)
|
|
|
|
|
Three months ended
March 31,
|
|
2021
|
2020
|
Revenue
|
$
4,813
|
$
4,221
|
Cost of
revenue
|
2,239
|
1,997
|
Gross
profit
|
2,574
|
2,224
|
Gross
profit margin percent
|
53.5%
|
52.7%
|
Research &
development
|
931
|
881
|
Sales &
marketing
|
660
|
768
|
General &
administrative
|
741
|
666
|
Total
operating expenses
|
2,332
|
2,315
|
Operating income (loss)
|
242
|
(91)
|
Other
income
|
10
|
20
|
Interest expense,
net
|
(49)
|
(19)
|
Deferred income tax
benefit (expense)
|
--
|
--
|
Net income
(loss)
|
$
203
|
$
(90)
|
Net income (loss) per
share:
|
|
|
Basic
|
$
0.03
|
$
(0.01)
|
Fully
Diluted
|
$
0.03
|
$
(0.01)
|
Weighted average
shares outstanding:
Basic
|
6,484
|
6,014
|
Fully
Diluted
|
7,306
|
6,014
|
|
Socket Mobile,
Inc.
|
|
Condensed Summary
Balance Sheets
|
|
(Amounts in
Thousands)
|
|
|
|
|
December
31,
|
|
(Unaudited)
2021
|
2020*
|
Cash
|
$
4,961
|
$
2,122
|
Accounts
receivable
|
2,407
|
2,113
|
Inventories
|
3,725
|
3,196
|
Deferred costs on
shipments to distributors
|
179
|
170
|
Other current
assets
|
388
|
335
|
Property and
equipment, net
|
858
|
848
|
Deferred tax
assets
|
5,507
|
5,507
|
Intangible assets,
net
|
1,909
|
--
|
Operating leases
right-of-use assets
|
513
|
609
|
Other long-term
assets
|
148
|
159
|
Total
assets
|
$
20,595
|
$
15,059
|
Accounts payable and
accrued liabilities
|
$
2,575
|
$
1,748
|
Bank non-formula
loan
|
1,000
|
--
|
Subordinated
convertible notes payable, net of discount
|
141
|
170
|
Subordinated
convertible notes payable, net of discount-related party
|
1,179
|
1,272
|
Deferred revenue on
shipments to distributors
|
525
|
451
|
Deferred service
revenue
|
47
|
54
|
Operating lease
liabilities
|
625
|
741
|
Total
liabilities
|
$
6,092
|
$
4,436
|
Common
stock
|
65,417
|
61,740
|
Accumulated
deficit
|
(50,914)
|
(51,117)
|
Total stockholder
equity
|
$
14,503
|
$
10,623
|
Total Liabilities and
Equity
|
$
20,595
|
$
15,059
|
|
*Derived from audited
financial statements.
|
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SOURCE Socket Mobile, Inc.