Socket Mobile Reports First Quarter 2023 Results
First Quarter 2023 Financial Highlights:
- Revenue of
$4.3 million $6.3 million $5.2 million - Gross margin of
48.1% versus49.7% in the prior year quarter and49.3% in the preceding quarter. - Operating expenses of
$3.0 million $2.7 million - GAAP net loss of
$993,000 $342,000 $515,000 - Cash balances at
March 31, 2023 of$2,963,000 December 31, 2022 of$3,624,000
"Our quarterly results were impacted by inventory balancing activities of our distribution partners," said
Despite these challenges, the Company remains committed to innovating and pursuing new opportunities. "We have made significant progress promoting our camera-based scanning technology. We already have app partners who have already integrated SocketCam C820, our free camera-based scanning solution, into their apps, allowing thousands of their users to enhance productivity by scanning barcodes directly into their apps. We are excited to announce that, in the second quarter of 2023, these app users who need to read damaged or more complex barcodes will be able to upgrade to the more advanced version, SocketCam C860. This upgrade will allow our app partners to support both cost-conscious and feature-conscious data capture requirements with the same application, enabling their customers to select based on their unique needs. As customers upgrade to the SocketCam C860, this selection will provide
"Additionally,
"We look forward to discussing our new products and strategies for fostering growth in the upcoming conference call. For over 30 years,
Conference Call
Management of
About
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, 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
Socket Mobile Investor Contact:
Chief Financial Officer
510-933-3016
lynn@socketmobile.com
© 2023,
– Financial tables to follow –
Condensed Summary Statements of Operations (Unaudited) | ||
(Amounts in thousands except per share amounts) | ||
Three months ended | ||
2023 | 2022 | |
Revenue | ||
Cost of revenue | 2,240 | 3,165 |
Gross margin | 2,072 | 3,128 |
Gross margin percent | 48.1 % | 49.7 % |
Research & development
| 1,247 | 1,054 |
Sales & marketing | 1,006 | 900 |
General & administrative | 774 | 710 |
Total operating expenses | 3,027 | 2,664 |
Operating income (loss) | (955) | 464 |
Interest expense, net | (38) | (46) |
Income tax expense | -- | (76) |
Net income (loss) | $ (993) | $ 342 |
Net income (loss) per share: | ||
Basic | $ (0.12) | |
Fully diluted | $ (0.12) | |
Weighted average shares outstanding: Basic Fully diluted |
7,107 7,107 |
7,234 7,724 |
Condensed Summary Balance Sheets | ||
(Amounts in Thousands) | ||
(Unaudited) |
| |
Cash | $ 2,963 | $ 3,624 |
Accounts receivable | 2,495 | 2,660 |
Inventories | 5,660 | 5,602 |
Deferred costs on shipments to distributors Other current assets | 274 556 | 266 617 |
Property and equipment, net | 1,962 | 1,657 |
Deferred tax assets | 8,668 | 8,668 |
Intangible assets, net | 1,655 | 1,694 |
Operating leases right-of-use assets | 3,444 | 3,560 |
Other long-term assets | 250 | 250 |
Total assets | $ 27,927 | $ 28,598 |
Accounts payable and accrued liabilities | $ 2,779 | $ 2,407 |
Bank non-formula loan | -- | 125 |
Subordinated convertible notes payable, net of discount | 148 | 147 |
Subordinated convertible notes payable, net of discount-related party | 1,238 | 1,231 |
Deferred revenue on shipments to distributors | 648 | 595 |
Deferred service revenue | 34 3,631 | 34 3,737 |
Total liabilities | 8,478 | 8,276 |
Common stock | 67,494 | 67,165 |
Accumulated deficit | (47,007) | (46,013) |
(1,038) | (830) | |
Total equity | 19,449 | 20,322 |
Total liabilities and equity | $ 27,927 | $ 28,598 |
*Derived from audited financial statements. |
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