Exhibit 99.1

 

 

Socket Mobile Reports First Quarter Results

 

NEWARK, Calif., – April 29, 2020 –

Socket Mobile, Inc. (NASDAQ: SCKT), a leading innovator of data capture and delivery solutions for enhanced productivity, today reported 2020 first quarter results, which include the early stages of COVID-19 impacts.

 

Revenue for the first quarter of 2020 was $4.2 million, a 9 percent decrease compared to revenue of $4.6 million for the first quarter of 2019. Gross profit margins for the first quarter of 2020 was 52.7 percent and 51.8 percent in the first quarter of 2019. Operating expenses for the first quarter of 2020 was $2.31 million and $2.35 million for the first quarter of 2019. Net loss for the first quarter of 2020 was $90,000, or ($0.01) per share, compared to a net income of $12,000, or $0.00 per share, in the first quarter of 2019.

 

“Our Q1 results were adversely impacted by the COVID -19 pandemic, most significantly in March 2020, and the impact has continued into Q2. Over 70% of our business is related to retail-type activities, so we have experienced a significant decrease in demand for our products due to widespread business closures. We continue to have some demand from those conducting essential services. During this challenging time, we are focused on protecting all of Socket Mobile’s stakeholders,” said Kevin Mills, president and chief executive officer.

 

“We are tightly managing our liquidity for our operating needs. In addition to leveraging the revolving credit facilities, we have received loan proceeds of approximately $1.0 million under the Paycheck Protection Program to safeguard our employees.

 

“Socket Mobile is better positioned to cope with today’s new operating environment as we moved our sales to an online model a few years ago, and in 2019 almost 100% of our sales were online sales. In addition, we expect the data capture requirement to evolve to meet many new requirements to document, track and trace using Apple and other consumer devices. We remain in a good position to support these requirements.” Mills concluded.

 

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 7491 458. From international locations, obtain the local dial-in number through your web browser at http://web.meetme.net/r.aspx?p=12&a=UtdSjbnMhgOjRD A live and replay audio webcast of the conference call can be accessed through the link, https://onlinexperiences.com/Launch/QReg/ShowUUID=099EBC8A-FE06-4197-A0E2-2F208F10D955&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
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.

 

© 2020, 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 and percentages)

 

   Three months ended March 31,
    2020          2019
Revenue  $4,221   $4,629 
Cost of revenue   1,997    2,229 
Gross profit   2,224    2,400 
        Gross profit margin percent   52.7%   51.8%
Research & development   881    894 
Sales & marketing   768    756 
General & administrative   666    703 
   Total operating expenses   2,315    2,353 
   Operating income (loss)   (91)   47 
Other income   20    —   
Interest (expense), net   (19)   (28)
Deferred income tax benefit (expense)   —      (7)
Net income (loss)  $(90)  $12 
Net income (loss) per share:
Basic
Fully Diluted
  $
$

(0.01)
(0.01)

   $
$

 

   0.00

        0.00

 
Weighted average shares outstanding:
Basic
Fully Diluted
   

 

6,014

6,014

    

 

5,940

6,134

 

 

 

 

 

 

 

 

 

 

Socket Mobile, Inc.

Condensed Summary Balance Sheets

(Amounts in Thousands)

 

   March 31, 2020
(Unaudited)
  December 31, 2019*
Cash  $1,143   $959 
Accounts receivable   2,814    2,837 
Inventories   3,295    3,179 
Deferred costs on shipments to distributors   217    234 
Other current assets   306    312 
Property and equipment, net   883    864 
Goodwill   4,427    4,427 
Deferred tax assets   5,507    5,507 
Operating leases capitalized   851    937 
Other assets   192    202 
Total assets  $19,635   $19,458 
Accounts payable and accrued liabilities  $2,531   $2,651 
Bank line of credit   1,939    1,413 
Term loan   208    333 
Deferred revenue on shipments to distributors   585    611 
Deferred service revenue   66    74 
Operating lease liabilities   1,034    1,134 
Other liabilities   4   8 
Total liabilities   6,367    6,224 
Common stock   61,197    61,073 
Accumulated deficit   (47,929)   (47,839)
Total equity   13,268    13,234 
Total liabilities and equity  $19,635   $19,458 

*Derived from audited financial statements.

 

 

# # #

 

 

 

 


The following information was filed by Socket Mobile, Inc. (SCKT) on Wednesday, April 29, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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