Market Overview

Socket Mobile reports results for the quarter and six months ended June 30, 2018

Share:

Socket Mobile reports results for the quarter and six months ended June 30, 2018

PR Newswire

NEWARK, Calif., July 26, 2018 /PRNewswire/ -- Socket Mobile, Inc. (NASDAQ:SCKT), a leading innovator of data capture and delivery solutions for enhanced productivity, today reported financial results for the three and six months ended June 30, 2018.

Revenue for the second quarter of 2018 was $4.2 million, a decrease of 28 percent over revenue of $5.8 million for the same quarter a year ago and an increase of five percent sequentially from revenue of $4.0 million in the immediately preceding quarter.  Revenue for the six months ended June 30, 2018 was $8.2 million, a decrease of 28 percent compared to revenue of $11.4 million for the same period a year ago.  Revenue in 2017 included shipments of large cordless barcode scanner orders to two customers of $0.7 million and $1.9 million for the three and six month periods ended June 30, 2017, respectively, whereas shipments in the first half of 2018 were primarily fulfilling smaller unit orders.

Net loss for the second quarter of 2018 was $138,000 or $0.02 per share, compared to net income for the second quarter of 2017 of $490,000 or $0.07 per fully diluted share. Net loss for the six months ended June 30, 2018 was $363,000, or $0.06 per share, compared to net income of $876,000 or $0.12 per fully diluted share for the same period in 2017.

Gross margins on revenue for the three and six month periods ended June 30, 2018 were 50.9 percent and 51.3 percent of revenue, respectively, compared to 53.6 percent and 52.7 percent, respectively, for the corresponding periods in 2017. The lower margins in 2018 reflect absorption of fixed manufacturing costs over a smaller number of units sold.

Operating expenses for the second quarter of 2018 were $2.3 million compared to operating expenses in the second quarter of 2017 of $2.2 million. Operating expenses for the six months ended June 30, 2018 were $4.6 million, an increase of four percent compared to operating expenses of $4.4 million for the same period a year ago.

The Company's balance sheet at June 30, 2018 included cash of $1.3 million following the pay down of a bank term loan to $1.0 million and pay down of total borrowings, consisting of the term loan and a revolving line of credit, to $2.5 million.

Kevin Mills, president and chief executive officer, commented, "We commenced shipping our new SocketScan line of standard cordless barcode scanners in late April 2018. Our SocketScan products improve the user experience with new features including status lights, extended battery life, field upgradable batteries, and a new easy to use charging station. Our many application partners and resellers are evaluating the new products and on completion, are expected to update their web pages and recommend their use, allowing us to complete the transition. Our feedback from these many evaluations has been very positive.

"For our registered developers, we've improved our software developer kit with our Capture SDK. The SDK includes developer tools such as Xamarin used by many in the corporate application developer community. We expect to experience growth in our application developer base as we are now able to support this community. New applications are a key driver of future revenue growth.

"VDC Research last fall recognized our worldwide leadership position in companion barcode scanning for mobile applications running on smart phones and tablets.  Our new hardware products and developer tools will enable us to maintain this leadership position," Mills concluded. 

Conference Call

Management of Socket Mobile will hold a conference call today at 2 P.M. PT to discuss the quarterly results and outlook for the future.  The dial-in number to access the call is (888) 424-8151 from within the U.S. Passcode is 8089174.  From international locations, obtain the local dial-in number through your web browser at https://www.conferenceplus.com/AlternateNumbers/alternatenumbers.aspx?100812&t=A&o=UzzVJkRHGcPDKr.  The call will also be carried live and available via replay through a link on Socket Mobile's website at www.socketmobile.com. From the home page, choose "About Socket"/"Investor Relations"/"Conference Calls and Events."  A transcript will be posted on the Company's website within a few days of the call. 

About Socket Mobile

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 and Twitter @socketmobile and subscribe to SocketTalk  the company's official 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 mobile computer and data collection products, including details on the timing, distribution and market acceptance of new 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:
Dave Dunlap
Chief Financial Officer
510-933-3035
dave@socketmobile.com

Socket, SocketScan  and DuraScan are registered trademarks of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective owners.

© 2018, Socket Mobile, Inc. All rights reserved.

–      Financial tables to follow –

Socket Mobile, Inc.

Summary Statements of Operations (Unaudited)

(Amounts in Thousands except per share amounts)



Three months ended June 30,

Six months ended June 30,


2018

2017

2018

2017

Revenue

$  4,192

$  5,806

$    8,173

$  11,428

Cost of revenue

2,060

2,696

3,977

5,405

Gross margin

2,132

3,110

4,196

6,023

   Gross margin percent

50.9%

53.6%

51.3%

52.7%

Research & development

917

859

1,864

1,656

Sales & marketing

734

742

1,471

1,501

General & administrative

625

601

1,290

1,290

   Total operating expenses

2,276

2,202

4,625

4,447

Operating income (loss)

(144)

908

(429)

1,576

Interest income (expense), net

(48)

(31)

(68)

(60)

Income tax (expense) benefit

54

(387)

134

(640)

Net income (loss)

$  (138)

$    490

$    (363)

$      876

Earnings (loss) per share:





   Basic

$ (0.02)

$   0.08

$   (0.06)

$     0.15

   Fully diluted

$ (0.02)

$   0.07

$   (0.06)

$     0.12

Weighted average shares outstanding:
Basic

5,880

5,965

6,310

5,939

Fully diluted

5,880

7,786

6,310

7,765

 

Socket Mobile, Inc.

Condensed Summary Balance Sheets

(Amounts in Thousands)



 June 30, 2018
(Unaudited)

December 31, 2017*

Cash

$      1,296

$       3,380

Accounts receivable, net

2,309

2,687

Inventories, net

2,213

2,198

Deferred cost on shipments to distributors

181

204

Other current assets

298

386

Deferred tax assets

5,771

5,637

Property and equipment, net

749

663

Goodwill

4,427

4,427

Other assets

257

272

Total assets

$   17,501

$     19,854

Accounts payable and accrued liabilities

$      1,807

$       1,743

Bank revolving line of credit

1,535

--

Bank term loan

1,000

--

Deferred revenue on shipments to distributors

441

493

Deferred service revenue

60

61

Other liabilities

302

327

Total liabilities

5,145

2,624

Common stock and additional paid-in capital

60,273

64,784

Accumulated deficit

(47,917)

(47,554)

Total stockholders' equity

12,356

17,230

Total liabilities and equity

$    17,501

$    19,854


*Derived from audited financial statements.

 

Cision View original content:http://www.prnewswire.com/news-releases/socket-mobile-reports-results-for-the-quarter-and-six-months-ended-june-30-2018-300686789.html

SOURCE Socket Mobile, Inc.

View Comments and Join the Discussion!