Socket Mobile Reports Second Quarter 2024 Results
Socket Mobile (NASDAQ: SCKT) reported its Q2 2024 financial results, showing a slight revenue decrease of 0.7% year-over-year to $5.08 million. The company faced challenges in the specialty retail sector, its primary revenue source. Key highlights include:
- Gross margin of 50.9%, down from 51.8% in Q2 2023
- Operating expenses increased 6% year-over-year to $3.1 million
- Operating loss widened to $535,000, up 84% from Q2 2023
- Cash balance of $2.1 million as of June 30, 2024
To address challenges, Socket Mobile is investing in new products like the SocketCam C860 app and expanding into new markets beyond retail. The company aims to reduce dependence on the retail sector and drive growth through innovative solutions for various industries.
Socket Mobile (NASDAQ: SCKT) ha riportato i risultati finanziari del secondo trimestre 2024, evidenziando una leggera diminuzione dei ricavi dello 0,7% rispetto all’anno precedente, raggiungendo 5,08 milioni di dollari. L’azienda ha affrontato sfide nel settore della vendita al dettaglio specializzata, la sua principale fonte di entrate. I punti salienti includono:
- Margine lordo del 50,9%, in calo rispetto al 51,8% nel secondo trimestre 2023
- Le spese operative sono aumentate del 6% rispetto all’anno precedente, arrivando a 3,1 milioni di dollari
- La perdita operativa è aumentata a 535.000 dollari, in crescita dell’84% rispetto al secondo trimestre 2023
- Saldo di cassa di 2,1 milioni di dollari al 30 giugno 2024
Per affrontare queste sfide, Socket Mobile sta investendo in nuovi prodotti come l’app SocketCam C860 e sta espandendo il proprio business in nuovi mercati al di fuori della vendita al dettaglio. L’azienda punta a ridurre la dipendenza dal settore retail e a promuovere la crescita attraverso soluzioni innovative per vari settori.
Socket Mobile (NASDAQ: SCKT) informó sus resultados financieros del segundo trimestre de 2024, mostrando una ligera disminución de ingresos del 0.7% interanual, alcanzando 5.08 millones de dólares. La compañía enfrentó desafíos en el sector del comercio minorista especializado, su principal fuente de ingresos. Los puntos clave incluyen:
- Margen bruto del 50.9%, disminuyendo desde el 51.8% en el segundo trimestre de 2023
- Los gastos operativos aumentaron un 6% interanual hasta 3.1 millones de dólares
- La pérdida operativa se amplió a 535,000 dólares, un incremento del 84% desde el segundo trimestre de 2023
- Saldo de caja de 2.1 millones de dólares a fecha del 30 de junio de 2024
Para abordar estos desafíos, Socket Mobile está invirtiendo en nuevos productos como la aplicación SocketCam C860 y expandiéndose a nuevos mercados más allá del comercio minorista. La empresa busca reducir su dependencia del sector minorista y fomentar el crecimiento a través de soluciones innovadoras para diversas industrias.
소켓 모바일(Socket Mobile, NASDAQ: SCKT)이 2024년 2분기 재무 결과를 발표하면서 전년 대비 소폭 매출이 0.7% 감소해 508만 달러에 이르렀습니다. 이 회사는 주요 수익원인 전문 소매 부문에서 어려움에 직면했습니다. 주요 하이라이트는 다음과 같습니다:
- 총 마진이 50.9%로, 2023년 2분기 51.8%에서 감소
- 운영 비용이 전년 대비 6% 증가하여 310만 달러에 달함
- 운영 손실이 53만 5천 달러로 확대되어 2023년 2분기 대비 84% 증가
- 2024년 6월 30일 기준 현금 잔고는 210만 달러
Socket Mobile은 이러한 도전에 대응하기 위해 SocketCam C860 애플리케이션과 같은 신제품에 투자하고 있으며, 소매업 이외의 새로운 시장으로 확장하고 있습니다. 이 회사는 소매 부문 의존도를 줄이고 다양한 산업을 위한 혁신적인 솔루션을 통해 성장을 추진할 계획입니다.
Socket Mobile (NASDAQ: SCKT) a annoncé ses résultats financiers pour le deuxième trimestre 2024, montrant une légère baisse de revenus de 0,7 % par rapport à l’année précédente, soit 5,08 millions de dollars. L’entreprise a rencontré des difficultés dans le secteur du commerce de détail spécialisé, sa principale source de revenus. Les points clés incluent :
- Marge brute de 50,9 %, en baisse par rapport à 51,8 % au deuxième trimestre 2023
- Les dépenses d'exploitation ont augmenté de 6 % d'une année sur l'autre, atteignant 3,1 millions de dollars
- La perte opérationnelle s'est élargie à 535 000 dollars, en hausse de 84 % par rapport au deuxième trimestre 2023
- Solde de trésorerie de 2,1 millions de dollars au 30 juin 2024
Pour relever ces défis, Socket Mobile investit dans de nouveaux produits comme l'application SocketCam C860 et s'implante sur de nouveaux marchés en dehors du secteur de la vente au détail. L'entreprise vise à réduire sa dépendance au secteur de la vente au détail et à favoriser sa croissance grâce à des solutions innovantes pour divers secteurs industriels.
Socket Mobile (NASDAQ: SCKT) hat die finanziellen Ergebnisse des zweiten Quartals 2024 veröffentlicht, die einen leichten Rückgang der Umsätze um 0,7 % im Jahresvergleich auf 5,08 Millionen Dollar zeigen. Das Unternehmen sah sich Herausforderungen im spezialisierten Einzelhandel gegenüber, seiner Hauptumsatzquelle. Die wichtigsten Punkte sind:
- Bruttomarge von 50,9 %, sank von 51,8 % im zweiten Quartal 2023
- Die Betriebskosten stiegen um 6 % im Jahresvergleich auf 3,1 Millionen Dollar
- Der operative Verlust weitete sich auf 535.000 Dollar aus, was einen Anstieg von 84 % gegenüber dem zweiten Quartal 2023 bedeutet
- Kassenbestand von 2,1 Millionen Dollar zum 30. Juni 2024
Um die Herausforderungen zu bewältigen, investiert Socket Mobile in neue Produkte wie die SocketCam C860-App und expandiert in neue Märkte außerhalb des Einzelhandels. Das Unternehmen zielt darauf ab, die Abhängigkeit vom Einzelhandelssektor zu verringern und das Wachstum durch innovative Lösungen für verschiedene Branchen voranzutreiben.
- Sequential revenue increase of 2.1% compared to Q1 2024
- Gross margin improvement from 50.3% in Q1 2024 to 50.9% in Q2 2024
- Introduction of new products like SocketCam C860 app and XtremeScan/DuraScan Wear for market expansion
- Revenue decreased 0.7% year-over-year to $5.08 million
- Operating loss increased 84% year-over-year to $535,000
- Operating expenses rose 6% compared to the prior year's period
- Cash balance declined from $2.8 million at the end of 2023 to $2.1 million
Insights
Socket Mobile's Q2 2024 results reveal a challenging period for the company, primarily due to weakness in the specialty retail sector. The 0.7% year-over-year revenue decline to
The company's gross margin of
Of particular concern is the declining cash position, which dropped from
While the company's efforts to expand beyond the specialty retail sector with new products like the SocketCam C860 app and rugged scanning solutions are commendable, the financial results suggest that these initiatives have yet to materially impact the bottom line. Investors should closely monitor the traction of these new products in the coming quarters to assess the effectiveness of Socket Mobile's diversification strategy.
Socket Mobile's pivot towards software solutions and rugged hardware demonstrates a strategic response to market challenges. The SocketCam C860 app is a particularly intriguing development, leveraging the ubiquity of mobile devices to create a versatile scanning solution. By enabling any smartphone to handle complex scanning tasks, including damaged barcodes and poor lighting conditions, Socket Mobile is expanding its potential market beyond traditional hardware-dependent solutions.
The recent expansion of C860 functionality to integrate with Flutter-based mobile apps is a savvy move. Flutter's cross-platform development framework is gaining popularity and this integration could open doors to a wider developer community, potentially increasing adoption rates. The in-app purchase model for C860 also presents a recurring revenue opportunity, which could help stabilize Socket Mobile's financials if successful.
On the hardware front, the XtremeScan and DuraScan Wear products target high-demand sectors like warehousing and manufacturing. These industries require durable, hands-free solutions and Socket Mobile's focus here could help diversify its revenue streams away from the struggling retail sector.
However, the transition from a hardware-centric to a more software-oriented business model can be challenging. It often requires different sales strategies, pricing models and customer support structures. The company will need to carefully manage this transition while maintaining its existing hardware business. The success of this strategy will largely depend on Socket Mobile's ability to effectively market these new solutions and provide robust support to drive adoption in new sectors.
Second Quarter 2024 Financial Highlights:
- Revenue of
$5.08 million 0.7% decrease compared to$5.12 million 2.1% sequential increase compared to$4.98 million - Gross margin of
50.9% versus51.8% in the prior year's quarter and50.3% in the preceding quarter. - Operating expenses were
$3.1 million 6% increase compared to the prior year's period and increased4% compared to$3.0 million - Operating loss amounted to
$535,000 84% from$292,000 10% from a loss of$485,000 - Cash balance on June 30, 2024 was approximately
$2.1M $2.8M
"The weakness of the specialty retail sector, our primary revenue source, presented significant challenges during Q2. This resulted in lower-than-anticipated revenue for the quarter and impacted our overall financial performance," said Kevin Mills, President, and Chief Executive Officer.
"Anticipating the continued challenges and uncertainties in the specialty retail sector, we are proactively investing in and promoting new products while also exploring opportunities beyond this market. Our advanced SocketCam C860 app exemplifies this strategy by turning any mobile device into a robust scanning solution, capable of tackling even damaged or difficult-to-read barcodes in adverse lighting conditions. Recently, we have expanded C860 functionality to integrate with Flutter-based mobile apps. This software solution, C860, is available through in-app purchases. Additionally, our ultra-rugged XtremeScan and DuraScan Wear hands free products offer versatile barcode scanning capabilities in rigorous environments like warehousing, manufacturing, and distribution. By investing in and promoting these solutions, we aim to drive company growth across new markets and reduce our dependence on the retail sector," continued Mr. Mills.
"We look forward to your participation in the upcoming conference call, where we will provide an update on the status of market traction of our new products." concluded Mr. Mills.
Conference Call
Management of Socket Mobile will hold a conference call 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 live conference call is (800) 237-1091 toll-free from within the
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 readers/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
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 Securities and Exchange Commission.
Socket Mobile Investor Contact:
Lynn Zhao
Chief Financial Officer
510-933-3016
lynn@socketmobile.com
Socket Mobile is a registered trademark of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective owners.
© 2024, 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, | |||
2024 | 2023 | 2024 | 2023 | |
Revenue | $ 5,081 | $ 5,117 | $ 10,059 | $ 9,429 |
Cost of revenue | 2,497 | 2,466 | 4,970 | 4,705 |
Gross margin | 2,584 | 2,651 | 5,089 | 4,724 |
Gross margin percent | 50.9 % | 51.8 % | 50.6 % | 50.1 % |
Research & development | 1,232 | 1,190 | 2,440 | 2,437 |
Sales & marketing | 1,154 | 1,004 | 2,185 | 2,011 |
General & administrative | 733 | 749 | 1,484 | 1,523 |
Total operating expenses | 3,119 | 2,943 | 6,109 | 5,971 |
Operating income (loss) | (535) | (292) | (1,020) | (1,247) |
Interest expense, net | (73) | (55) | (145) | (93) |
Income tax benefit (expense) | -- | (166) | -- | (166) |
Net income (loss) | $ (608) | $ (513) | (1,165) | (1,506) |
Net income (loss) per share: | ||||
Basic | $ (0.08) | $ (0.06) | $ (0.16) | $ (0.18) |
Fully diluted | $ (0.08) | $ (0.06) | $ (0.16) | $ (0.18) |
Weighted average shares outstanding: Basic Fully diluted | 7,572 7,572 | 7,164 7,164 | 7,511 7,511 | 7,135 7,135 |
Socket Mobile, Inc. | ||
Condensed Summary Balance Sheets | ||
(Amounts in Thousands) | ||
(Unaudited) June 30, 2024 | December 31, | |
Cash | $ 2,117 | $ 2,827 |
Accounts receivable | 2,550 | 1,700 |
Inventories | 5,186 | 5,409 |
Deferred costs on shipments to distributors Other current assets | 562 247 | 323 441 |
Property and equipment, net | 2,671 | 3,033 |
Deferred tax assets | 10,112 | 10,112 |
Intangible assets, net | 1,496 | 1,559 |
Operating leases right-of-use assets | 2,853 | 3,088 |
Other long-term assets | 249 | 250 |
Total assets | $ 28,043 | $ 28,742 |
Accounts payable and accrued liabilities | $ 2,537 | $ 2,185 |
Subordinated convertible notes payable, net of discount | 150 | 150 |
Subordinated convertible notes payable, net of discount-related party | 2,839 | 2,836 |
Deferred revenue on shipments to distributors | 592 | 826 |
Deferred service revenue | 34 3,065 | 33 3,292 |
Total liabilities | 9,217 | 9,322 |
Common stock | 68,962 | 68,391 |
Accumulated deficit | (49,098) | (47,933) |
Treasury stock | (1,038) | (1,038) |
Total equity | 18,826 | 19,420 |
Total liabilities and equity | $ 28,043 | $ 28,742 |
*Derived from audited financial statements. | ||
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SOURCE Socket Mobile, Inc.
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