FREMONT,
Calif., Oct. 24, 2024 /PRNewswire/ -- Socket
Mobile, Inc. (NASDAQ: SCKT), a leading provider 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
nine months ended September 30,
2024.
Third Quarter 2024 Financial Highlights:
- Revenue of $3.9 million,
reflecting a 21% increase compared to $3.2
million for the prior year's quarter, and a 24% sequential
decrease compared to $5.1 million for
the preceding quarter.
- Gross margin of 49% versus 44.2% in the prior year's quarter
and 50.9% in the preceding quarter.
- Operating expenses were $2.9
million, reflecting a 4% increase compared to the prior
year's period and a decrease of 6% compared to $3.1 million in the preceding quarter.
- Operating loss amounted to $1.0
million, a decrease of 26% from a loss of $1.4 million in the prior year's quarter, and an
increase of 93% from a loss of $0.5
million in the preceding quarter.
- Cash balance on September 30,
2024 was approximately $2.9
million compared to $2.8
million at the end of 2023 and $2.1
million at the end of the previous quarter. A convertible
note financing of $1.0 million was
completed in August 2024.
"Our Q3 revenue was lower than projected. We also experienced
slower, albeit positive evaluation of our new products, which
delayed the associated revenue," said Kevin
Mills, President, and Chief Executive Officer.
"To support our expansion into the industrial market, we
completed a $1.0 million convertible
note financing in August. We continue to serve existing customers
while actively promoting our new products. In September, we
announced that our CaptureSDK and entire line of barcode
scanners and NFC reader/writers have been tested and are fully
compatible with iOS 18. Our ultra-rugged XtremeScan family,
specifically designed for demanding environments like plant
operations, warehousing, and manufacturing, is now compatible with
iPhone 16," continued Mr. Mills.
"We look forward to your participation in the upcoming
conference call, where we will discuss the company's progress with
its new products and market expansion." concluded Mr. Mills.
Conference Call
Management of Socket Mobile will hold
a conference call 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 live conference call is (800)
237-1091 toll-free from within the U.S. or (848)
488-9280 (toll).
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
readers/writers. Mobile Applications servicing the specialty
retailer, field service, digital ID, 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 Fremont, Calif., and can be reached at
+1-510-933-3000 or www.socketmobile.com. Follow Socket Mobile on
LinkedIn, X, and keep up with our latest News and Updates.
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 computers and data collection products, including
details on the timing, distribution, and market acceptance of the
products, and statements predicting trends, sales, 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 Mobile is a registered trademark of Socket Mobile.
All other trademarks and trade names contained herein may be those
of their respective owners.
© 2024, 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
September 30,
|
Nine months ended
September 30,
|
|
2024
|
2023
|
2024
|
2023
|
|
Revenue
|
$
3,872
|
$
3,206
|
$
13,932
|
$
12,635
|
|
Cost of
revenue
|
1,975
|
1,788
|
6,946
|
6,493
|
|
Gross margin
|
1,897
|
1,418
|
6,986
|
6,142
|
|
Gross
margin percent
|
49.0 %
|
44.2 %
|
50.1 %
|
48.6 %
|
|
Research &
development
|
1,162
|
1,207
|
3,602
|
3,643
|
|
Sales &
marketing
|
1,122
|
1,002
|
3,308
|
3,014
|
|
General &
administrative
|
644
|
608
|
2,128
|
2,131
|
|
Total
operating expenses
|
2,928
|
2,817
|
9,038
|
8,788
|
|
Operating
loss
|
(1,031)
|
(1,399)
|
(2,052)
|
(2,646)
|
|
Interest expense,
net
|
(84)
|
(76)
|
(229)
|
(170)
|
|
Income tax benefit
(expense)
|
--
|
150
|
--
|
(16)
|
|
Net loss
|
$(1,115)
|
$ (1,325)
|
$ (2,281)
|
$ (2,832)
|
|
Net loss per
share:
|
|
|
|
|
|
Basic
|
$ (0.15)
|
$ (0.16)
|
$
(0.30)
|
$
(0.34)
|
|
Fully
diluted
|
$ (0.15)
|
$ (0.16)
|
$
(0.30)
|
$
(0.34)
|
|
Weighted average shares
outstanding:
Basic
Fully
diluted
|
7,600
7,600
|
7,320
7,320
|
7,542
7,542
|
7,197
7,197
|
|
Socket Mobile,
Inc.
|
|
Condensed Summary
Balance Sheets
|
|
(Amounts in
Thousands)
|
|
|
(Unaudited)
Sept 30,
2024
|
December 31,
2023*
|
|
Cash
|
$
2,913
|
$ 2,827
|
|
Accounts
receivable
|
1,441
|
1,700
|
|
Inventories
|
5,250
|
5,409
|
|
Deferred costs on
shipments to distributors
Other current
assets
|
266
472
|
323
441
|
|
Property and equipment,
net
|
2,824
|
3,033
|
|
Deferred tax
assets
|
10,112
|
10,112
|
|
Intangible assets,
net
|
1,464
|
1,559
|
|
Operating leases
right-of-use assets
|
2,730
|
3,088
|
|
Other long-term
assets
|
249
|
250
|
|
Total assets
|
$ 27,721
|
$
28,742
|
|
Accounts payable and
accrued liabilities
|
$
2,116
|
$ 2,185
|
|
Subordinated
convertible notes payable, net of discount
|
150
|
150
|
|
Subordinated
convertible notes payable, net of discount-related party
|
3,830
|
2,836
|
|
Deferred revenue on
shipments to distributors
|
688
|
826
|
|
Deferred service
revenue
Operating lease liabilities
|
34
2,941
|
33
3,292
|
|
Total
liabilities
|
9,759
|
9,322
|
|
Common stock
|
69,213
|
68,391
|
|
Accumulated
deficit
|
(50,213)
|
(47,933)
|
|
Treasury
stock
|
(1,038)
|
(1,038)
|
|
Total equity
|
17,962
|
19,420
|
|
Total liabilities and
equity
|
$
27,721
|
$
28,742
|
|
*Derived from audited
financial statements.
|
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SOURCE Socket Mobile, Inc.