FREMONT,
Calif., Aug. 2, 2023 /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
six months ended June 30, 2023.
Second Quarter 2023 Financial Highlights:
- Revenue decreased 15% to $5.1
million, compared to $6.0
million in the prior-year quarter, and increased by 19%
sequentially compared to $4.3 million
in Q1 2023.
- Gross margin improved to 51.8%, compared to 50.2% in the
prior-year quarter and 48.1% in the preceding quarter.
- Operating expenses for the second quarter of 2023 were
$2.9 million, an increase of 3%
compared to operating expenses of $2.8
million in the prior-year quarter, and a decrease of 3%
sequentially in the preceding quarter.
- Operating loss was $292,000
compared to an operating income of $189,000 for the prior-year quarter, and
operating loss of $955,000 in the
preceding quarter.
- Strengthened the balance sheet through a secured subordinated
convertible note financing of $1.6
million. The cash balances were $3.4
million as of June 30, 2023
compared to $3.0 million as of
March 31, 2023 and $3.6 million as of December 31, 2022
"During Q2, we continued to face challenges driven by external
factors such as the weakness of the retail sector, which is the
primary source of our revenues. These challenges had a significant
impact on our financial performance, resulting in lower than
anticipated revenue for the quarter," said Kevin Mills, President, and Chief Executive
Officer.
"While we faced challenges and uncertainties in the retail
sector, we continue to invest in expanding the use of our
technology beyond retail. We believe that this approach will not
only drive our growth but also reduce our heavy reliance on the
retail sector. Our primary focus has been on adapting our products
for industrial environments, such as warehousing and logistics. As
part of this effort, we recently announced our latest product, the
DuraScan Wear DW930, a revolutionary wearable barcode scanner
designed to offer hands-free, versatile barcode scanning capability
in rigorous work environments such as warehousing, manufacturing,
and distribution.
"In addition to this, we have updated our CaptureSDK to support
SocketScan S370 (NFC & QR code reader) and SocketScan S550 (NFC
reader). This enhancement will ensure that our development partners
can incorporate some of the new features expected in iOS 17
associated with personal identification," continued Mills.
"We are delighted to share that our SocketScan S550, NFC Mobile
Wallet Reader has been awarded FeliCa certification. FeliCa is a
contactless RFID smart card technology developed by Sony in
Japan, widely used for convenient
payment and other transactions. This certification makes SocketScan
S550 compatible with the FeliCa system used in multiple regions and
countries worldwide, including Japan, Bangladesh, Hong
Kong, India, Indonesia, Vietnam, and many others.
"These advancements in our product offerings demonstrate our
dedication to meeting the evolving needs of our app partners and
industry. While we acknowledge the current difficulties, we believe
in our long-term vision and perseverance, which will drive us
towards success," concluded 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 reader/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, Twitter, 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 computer 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 is a registered trademark of Socket Mobile. All
other trademarks and trade names contained herein may be those of
their respective owners.
© 2023, 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 June
30,
|
Six months ended June
30,
|
|
2023
|
2022
|
2023
|
2022
|
Revenue
|
$
5,117
|
$
6,046
|
$
9,429
|
$
12,339
|
Cost of
revenue
|
2,466
|
3,010
|
4,705
|
6,176
|
Gross margin
|
2,651
|
3,036
|
4,724
|
6,163
|
Gross
margin percent
|
51.8 %
|
50.2 %
|
50.1 %
|
50.0 %
|
Research &
development
|
1,190
|
1,121
|
2,437
|
2,175
|
Sales &
marketing
|
1,004
|
964
|
2,011
|
1,864
|
General &
administrative
|
749
|
762
|
1,523
|
1,471
|
Total
operating expenses
|
2,943
|
2,847
|
5,971
|
5,510
|
Operating income
(loss)
|
(292)
|
189
|
(1,247)
|
653
|
Other income
|
--
|
--
|
--
|
--
|
Interest expense,
net
|
(55)
|
(45)
|
(93)
|
(91)
|
Income tax benefit
(expense)
|
(166)
|
(40)
|
(166)
|
(116)
|
Net income
(loss)
|
$
(513)
|
$
104
|
(1,506)
|
$
446
|
Net income (loss) per
share:
|
|
|
|
|
Basic
|
$
(0.06)
|
$
0.01
|
$
(0.18)
|
$ 0.06
|
Fully
diluted
|
$
(0.06)
|
$
0.01
|
$
(0.18)
|
$ 0.05
|
Weighted average shares
outstanding:
Basic
|
7,164
|
7,220
|
7,135
|
7,226
|
Fully
diluted
|
7,164
|
7,643
|
7,135
|
7,673
|
Socket Mobile,
Inc.
Condensed Summary
Balance Sheets
(Amounts in
Thousands)
|
|
|
(Unaudited)
June 30,
2023
|
December 31,
2022*
|
Cash
|
$
3,431
|
$ 3,624
|
Accounts
receivable
|
3,200
|
2,660
|
Inventories
|
5,509
|
5,602
|
Deferred costs on
shipments to distributors
Other current
assets
|
413
618
|
266
617
|
Property, equipment and
computer software, net
|
2,413
|
1,657
|
Deferred tax
assets
|
8,502
|
8,668
|
Intangible assets,
net
|
1,623
|
1,694
|
Operating leases
right-of-use assets
|
3,327
|
3,560
|
Other long-term
assets
|
275
|
250
|
Total assets
|
$ 29,311
|
$
28,598
|
Accounts payable and
accrued liabilities
|
$
2,439
|
$
2,407
|
Bank non-formula
loan
|
--
|
125
|
Subordinated
convertible notes payable, net of discount
|
149
|
147
|
Subordinated
convertible notes payable, net of discount-related party
|
2,828
|
1,231
|
Deferred revenue on
shipments to distributors
|
942
|
595
|
Deferred service
revenue
|
33
|
34
|
Operating lease
liabilities
|
3,520
|
3,737
|
Total
liabilities
|
9,911
|
8,276
|
Common stock
|
67,957
|
67,165
|
Accumulated
deficit
|
(47,519)
|
(46,013)
|
Treasury
stock
|
(1,038)
|
(830)
|
Total equity
|
19,400
|
20,322
|
Total liabilities and
equity
|
$
29,311
|
$
28,598
|
|
*Derived from audited
financial statements.
|
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SOURCE Socket Mobile, Inc.