Socket Mobile Reports Solid Second Quarter Results

<br /> Socket Mobile Reports Solid Second Quarter Results<br />

PR Newswire


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 30


    th

    , 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





[email protected]





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.

Cision
View original content to download multimedia:

https://www.prnewswire.com/news-releases/socket-mobile-reports-solid-second-quarter-results-301339203.html

SOURCE Socket Mobile, Inc.