NEWARK, Calif., July 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 that are
determined in accordance with generally accepted accounting
principles in the United States
("GAAP") for the three and six months ended June 30, 2021.
Second Quarter Financial Highlights:
- Revenue for the second quarter increased 119% to $6.0 million compared with $2.7 million for the same period in 2020 and 24%
from the revenue of $4.8 million in
Q1 2021. The increase is primarily driven by the deployments of
business applications in the retail industry.
- Q2 Gross margin increased to 55% compared with 50% for the same
period last year and 53% sequentially from the immediately
preceding quarter primarily as a result of higher revenues and
absorption of fixed manufacturing overhead.
- Operating income for the second quarter of 2021 was
$814,000 compared to an operating
loss of ($810,000) in the prior year
period and an operating income of $242,000 in Q1 2021 primarily due to modestly
increased operating expenses offset by higher revenues.
- Operating expenses for the second quarter of 2021 were
$2.4 million, an increase of 12%
compared to operating expenses of $2.2
million for the same quarter a year ago, and an increase of
5% sequentially from the immediately preceding quarter.
- Q2 net income of $2.6 million
included an adjustment of $1.9
million related to the recognition of tax benefit resulting
from the disqualified disposition of incentive stock options as of
June 30th, 2021. This
adjustment increased deferred tax assets.
"We are pleased with our strong performance for the second
quarter of 2021.The deployments of business applications,
particularly in the retail industry, have served as a key driver of
our return to profitable growth we have had historically," said
Kevin Mills, president and chief
executive officer. "The market opportunity and positive momentum we
are seeing is encouraging as it validates our application driven
business model. In line with our operating plan, we are investing
in both technology and talent, while remaining disciplined on
costs, so we can further strengthen our application developer tools
to better serve the developer community.
"We continue to experience supply chain constraints and
inflationary pressure that are impacting us as well as many other
companies around the world. I'm proud of our team's success in
meeting customer demand and delivering a strong quarter despite the
challenges.
"Our financial strength, including a strong cash balance and the
available lines of credit allows us to be well-positioned to invest
in new products to drive long-term profitable growth and to
withstand unforeseen adversities.
"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 second 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
7569 552. From international locations, obtain the local dial-in
number through your web browser at
http://web.meetme.net/r.aspx?p=11&a=UDSpRFPaUkZThc. A
live and replay audio webcast of the conference call can be
accessed through a link
https://onlinexperiences.com/Launch/QReg/ShowUUID=5595207E-339C-4EA9-83C5-9280D32559B1&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.
Socket Mobile,
Inc.
|
Condensed Summary
Statements of Operations (Unaudited)
|
(Amounts in
thousands except per share amounts)
|
|
|
Three months ended
June 30,
|
Six months ended June
30,
|
|
2021
|
2020
|
2021
|
2020
|
Revenue
|
$
5,953
|
$
2,715
|
$
10,766
|
$
6,936
|
Cost of
revenue
|
2,698
|
1,354
|
4,937
|
3,351
|
Gross
margin
|
3,255
|
1,361
|
5,829
|
3,585
|
Gross
margin percent
|
54.7%
|
50.1%
|
54.1%
|
51.7%
|
Research &
development
|
972
|
859
|
1,903
|
1,740
|
Sales &
marketing
|
734
|
722
|
1,394
|
1,490
|
General &
administrative
|
735
|
590
|
1,476
|
1,256
|
Total
operating expenses
|
2,441
|
2,171
|
4,773
|
4,486
|
Operating income
(loss)
|
814
|
(810)
|
1,056
|
(901)
|
Other
income
|
--
|
50
|
10
|
70
|
Interest expense,
net
|
(51)
|
(8)
|
(100)
|
(27)
|
Current income tax
expense
|
(6)
|
--
|
(6)
|
--
|
Deferred income tax
benefit
|
1,870
|
--
|
1,870
|
--
|
Net income
(loss)
|
$2,627
|
$
(768)
|
$2,830
|
$
(858)
|
Net income (loss) per
share:
|
|
|
|
|
Basic
|
$
0.34
|
$ (0.13)
|
$
0.38
|
$
(0.14)
|
Fully
diluted
|
$
0.27
|
$ (0.13)
|
$
0.31
|
$
(0.14)
|
Weighted average
shares outstanding:
Basic
Fully
diluted
|
7,129
8,907
|
6,009
6,009
|
6,808
8,594
|
6,012
6,012
|
Socket Mobile,
Inc.
|
Condensed Summary
Balance Sheets
|
(Amounts in
Thousands)
|
|
|
June 30,
2021
(Unaudited)
|
December 31,
2020*
|
Cash
|
$
4,920
|
$
2,122
|
Accounts
receivable
|
2,468
|
2,113
|
Inventories
|
4,020
|
3,196
|
Deferred costs on
shipments to distributors
Other current
assets
|
179
775
|
170
335
|
Property and
equipment, net
|
855
|
848
|
Deferred tax
assets
|
7,377
|
5,507
|
Intangible assets,
net
|
1,878
|
--
|
Operating leases
right-of-use assets
|
414
|
609
|
Other long-term
assets
|
135
|
159
|
Total
assets
|
$
23,021
|
$
15,059
|
Accounts payable and
accrued liabilities
|
$
2,371
|
$
1,748
|
Bank non-formula
loan
|
875
|
--
|
Subordinated
convertible notes payable, net of discount
|
141
|
170
|
Subordinated
convertible notes payable, net of discount-related party
|
1,187
|
1,272
|
Deferred revenue on
shipments to distributors
|
530
|
451
|
Deferred service
revenue
Operating lease liabilities
|
41
508
|
54
741
|
Total
liabilities
|
5,653
|
4,436
|
Common
stock
|
65,655
|
61,740
|
Accumulated
deficit
|
(48,287)
|
(51,117)
|
Total
equity
|
17,368
|
10,623
|
Total liabilities and
equity
|
$
23,021
|
$
15,059
|
*Derived from audited financial statements.
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SOURCE Socket Mobile, Inc.