1 month ago
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PR Newswire
FREMONT, Calif., Feb. 22, 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 twelve months ended December 31, 2022.
Fourth Quarter 2022 Financial Highlights: Revenue of
$5.2 million
, a 15% decrease compared to$6.1 million
in the comparable prior year quarter and a 39% increase sequentially compared to$3.7 million
in Q3 2022.$152,000
compared to an operating income of$0.7 million
a year ago and an operating loss of$947,000
in the preceding quarter.$0.06
, which included$0.08
per share income tax benefit primarily related to the adoption of Section 174 of the Tax Cuts and Jobs Act of 2017, compared to diluted earnings per share of$0.11
a year ago and a net loss per share of($0.11)
in the prior quarter.Full Year 2022 Financial Highlights: Revenue for the full year of 2022 was
$21.2 million
versus$23.2 million
in 2021, a decrease of 8% year-over-year.$446,000
compared to operating income of$2.7 million
in 2021.$0.01
, which included a$0.09
per shares income tax benefit primarily related to the adoption of Section 174 of the Tax Cuts and Jobs Act of 2017, compared to diluted earnings per share of$0.48
in the prior year, which included a$0.21
per share income tax benefit."In 2022, we made significant progress in building the foundation we need to ensure long-term growth in the data capture market. We added the C820, a camera-based scanning software to our product portfolio. The C820 enables our App partners to provide their end users with free scanning support from day one and provides a mechanism to support their end users with high-level data capture requirements to seamlessly upgrade to the appropriate data capture solutions," said Kevin Mills, President, and Chief Executive Officer.
"We also launched the S550, NFC Mobile Wallet Reader and the S370, a universal NFC & QR Code Mobile Wallet Reader to enable our app partners to support eWallet-centric opportunities like mobile driver licenses and digital healthcare cards. The S550 was chosen as a finalist for the NFC Innovation Award."
"We significantly improved CaptureSDK, our unified software development toolset that supports our entire data capture portfolio. We now support Flutter, an open-source framework created by Google, Swift Package Manager, iOS' native package managing solution for developers, and .NET MAUI, a replacement for Xamarin to create multi-platform apps using a single project," continued Mills.
"In Q4 2022, we delivered an increase of 39% in revenue and improved the gross margin by 490 basis points compared to Q3 in a very challenging and uncertain macroeconomic environment. We reduced our inventory by 9% from our Q3 levels while maintaining our on-time delivery commitment to our partners. In October, Socket Mobile celebrated its 30th anniversary. We'd like to thank everyone who has contributed to our journey over the 30 years, and we will continue to innovate and improve as we remain focused on delivering world-class data capture solutions to our partners." concluded Mills.
Conference CallThe management of Socket Mobile will hold a conference call and webcast 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 (866) 374-5140 passcode 43948657#. A live and replay audio webcast of the conference call can be accessed through a link https://onlinexperiences.com/Launch/QReg/ShowUUID=379FE181-E188-401A-A6C4-E06207FC348F&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, 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 socketmobile.com. Follow Socket Mobile on LinkedIn, Twitter, and keep up with our latest News and Updates.
Forward-Looking StatementsThis 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.
© 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)
Year ended Dec 31,
Three months ended Dec 31,
(Unaudited)
2022
2021
(Unaudited)
2022
2021
Revenue
$ 21,238
$ 23,199
$ 5,171
$ 6,114
Cost of revenue
10,872
10,763
2,623
2,929
Gross profit
10,366
12,436
2,548
3,185
Gross profit percent
48.8 %
53.6 %
49.3 %
52.1 %
Research & development
4,362
3,965
1,091
1,047
Sales & marketing
3,638
3,002
909
820
General & administrative
2,812
2,772
700
630
Total operating expenses
10,812
9,739
2,700
2,497
Operating income (loss)
(446)
2,697
(152)
688
Interest expense
(175)
(199)
(41)
(49)
Other income
--
65
--
55
Deferred income tax benefit
708
1,903
708
299
Net income
$ 87
$ 4,466
$ 515
$ 993
Net income per share:
Basic
$ 0.01
$ 0.58
$ 0.06
$ 0.13
Fully diluted
$ 0.01
$ 0.48
$ 0.06
$ 0.11
Weighted average shares outstanding:
Basic
Fully diluted
7,185
7,533
6,991
8,923
7,135
8,246
7,184
8,883
Socket Mobile, Inc.Condensed Summary Balance Sheets(Amounts in Thousands)
(Unaudited)
December 31,
2022
December 31,
2021*
Cash
$ 3,624
$ 6,096
Accounts receivable
2,660
2,576
Inventories
5,602
5,155
Deferred costs on shipments to distributors
Other current assets
266
617
159
395
Property and equipment, net
1,657
1,069
Deferred tax assets
8,668
7,960
Intangible assets, net
1,694
1,814
Operating leases right-of-use assets
3,560
211
Other long-term assets
250
140
Total assets
$ 28,598
$ 25,575
Accounts payable and accrued liabilities
$ 2,407
$ 2,862
Bank non-formula loan
125
625
Subordinated convertible notes payable, net of discount
147
144
Subordinated convertible notes payable, net of discount-related party
1,231
1,201
Deferred revenue on shipments to distributors
595
407
Deferred service revenue
Operating lease liabilities
34
3,737
32
258
Total liabilities
8,276
5,529
Common stock
67,165
66,147
Accumulated deficit
(46,013)
(46,101)
Treasury stock
(830)
--
Total equity
20,322
20,046
Total liabilities and equity
$ 28,598
$ 25,575
*Derived from audited financial statements.
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SOURCE Socket Mobile, Inc.
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