Exhibit 99.1



Socket Mobile Reports Solid Second Quarter Results

NEWARK, Calif., – July 22, 2021 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 30th, 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



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


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.




– 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,
   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:
Fully diluted




























Socket Mobile, Inc.

Condensed Summary Balance Sheets

(Amounts in Thousands)


   June 30, 2021
  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    179    170 
Other current assets   




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    41    54 
Operating lease liabilities   




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.


# # #



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