Socket Mobile Reports Solid Fourth Quarter and Full Year 2021 Results
Socket Mobile, Inc. (SCKT) announced its financial results for Q4 and the full year of 2021. Q4 revenue grew 31% year-over-year to $6.1 million, while full-year revenue increased 48% to $23.2 million. Despite a strong revenue performance, Q4 gross margin decreased to 52.1%. Operating income for Q4 was $0.7 million, down from $1.0 million in Q3. The company reported diluted earnings per share of $0.11, down from $0.22 a year prior. The cash balance improved to $6.1 million at year-end. The Board approved a $1.8 million share repurchase program, expiring in March 2023.
- Q4 revenue increased 31% year-over-year to $6.1 million.
- Full-year revenue jumped 48% to $23.2 million.
- Operating income increased to $2.7 million for the full year, compared to $76,000 in the previous year.
- Cash balance improved significantly to $6.1 million.
- Q4 gross margin decreased to 52.1% from 53.2% year-over-year.
- Q4 operating income declined from $1.0 million in Q3 to $0.7 million.
NEWARK, Calif., Feb. 16, 2022 /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, 2021.
Fourth Quarter 2021 Financial Highlights:
- Revenue increased
31% to$6.1 million , compared to$4.7 million in the comparable prior year quarter and decreased by3% sequentially compared to$6.3 million in Q3 2021. - Gross margin decreased to
52.1% compared with53.2% for the prior year quarter and54.2% for the immediately preceding quarter. - Operating income was
$0.7 million compared to an operating income of$0.5 million a year ago and$1.0 million in the preceding quarter. - Diluted earnings per share was
$0.11 compared to$0.22 a year ago, which included a non-cash gain of$0.15 per share on debt extinguishment related to the forgiveness of Paycheck Protection Program Loan, and$0.07 in the prior quarter. - Cash balance was
$6.1 million at the end of year compared to$2.1 million a year ago.
Full Year 2021 Financial Highlights:
- Revenue for the full year of 2021 was 23.2 million versus
$15.7 million in 2020, an increase of48% year-over-year. - Gross margin for 2021 was
53.6% compared to53.1% in 2020. - Operating income was
$2.7 million compared to$76,000 in 2020 with the exclusion of a non-cash goodwill impairment charge of$4.4 million . - Diluted earnings per share was
$0.48 , which included a$0.21 per share income tax benefit, compared to a loss per share of$0.51 in the prior year. - Generated
$2.1 million in operating cash flow compared to$0.8 million in 2020.
"We had a solid Q4 and achieved full-year revenue growth of 48 percent in 2021," said Kevin Mills, President and Chief Executive Officer. "Demand for our mobile data capture products in retail applications remains our primary source of revenue while we continue growing business in other market segments."
Mills continued, "we are pleased with the strong results achieved in 2021. We grew our business, strengthened our financial position, and continued investing in growth initiatives. I'm proud of the team for what we have accomplished.
"We expect supply constraints to persist. Consequently, we have proactively and strategically managed inventory. We are confident that our focus on navigating delivery and supply issues will enable us to continue to meet our customers' needs.
"Our 2021 performance sets a strong foundation to capture growth opportunities as we remain focused on executing our strategy of delivering data capture solutions in conjunction with our development partners. We will continue to improve development tools, enhance product offerings, and control expenses."
"Finally, we are happy to announce that our Board has approved a
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 9368 227. From international locations, obtain the local dial-in number through your web browser at http://web.meetme.net/r.aspx?p=11&a=UsOJvoQqBNSwhW. A live and replay audio webcast of the conference call can be accessed through a link https://onlinexperiences.com/Launch/QReg/ShowUUID=A4D53B46-3963-4487-8A21-00495BAB275C&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
Media Contact:
David Holmes
David.holmes@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.
© 2022, 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) 2021 | 2020 | (Unaudited) | 2020 | |
Revenue | $ 15,700 | $ 6,114 | $ 4,655 | |
Cost of revenue | 10,763 | 7,365 | 2,929 | 2,179 |
Gross proft | 12,436 | 8,335 | 3,185 | 2,476 |
Gross profit percent | ||||
Research & development | 3,965 | 3,140 | 1,047 | 719 |
Sales & marketing | 3,002 | 2,849 | 820 | 700 |
General & administrative | 2,772 | 2,270 | 630 | 529 |
Goodwill impairment charges | -- | 4,427 | -- | -- |
Total operating expenses | 9,739 | 12,686 | 2,497 | 1,948 |
Operating income (loss) | 2,697 | (4,351) | 688 | 528 |
Extinguishment of debt income and other income | -- | 1,119 | -- | 1,049 |
Interest expense | (199) | (98) | (49) | (46) |
Other income | 65 | -- | 55 | -- |
Deferred income tax benefit | 1,903 | 51 | 299 | 52 |
Net income (loss) | $ 4,466 | $ (3,279) | $ 993 | $ 1,583 |
Net income (loss) per share: | ||||
Basic | $ 0.58 | $ (0.51) | $ 0.13 | $ 0.24 |
Fully diluted | $ 0.48 | $ (0.51) | $ 0.11 | $ 0.22 |
Weighted average shares outstanding: Basic Fully diluted | 6,991 8,923 | 6,036 6,036 | 7,184 8,883 | 6,084 7,033 |
Socket Mobile, Inc. | ||
Condensed Summary Balance Sheets | ||
(Amounts in Thousands) | ||
(Unaudited) December 31, | December 31, | |
Cash | $ 6,096 | $ 2,122 |
Accounts receivable | 2,576 | 2,113 |
Inventories | 5,155 | 3,196 |
Deferred costs on shipments to distributors Other current assets | 159 395 | 170 335 |
Property and equipment, net | 1,069 | 848 |
Deferred tax assets | 7,960 | 6,057 |
Intangible assets, net | 1,814 | -- |
Operating leases right-of-use assets | 211 | 609 |
Other long-term assets | 140 | 159 |
Total assets | $ 25,575 | $ 15,609 |
Accounts payable and accrued liabilities | $ 2,862 | $ 1,748 |
Bank non-formula loan | 625 | -- |
Subordinated convertible notes payable, net of discount | 144 | 170 |
Subordinated convertible notes payable, net of discount-related party | 1,201 | 1,272 |
Deferred revenue on shipments to distributors | 407 | 451 |
Deferred service revenue Operating lease liabilities | 32 258 | 54 741 |
Total liabilities | 5,529 | 4,436 |
Common stock | 66,147 | 61,740 |
Accumulated deficit | (46,101) | ( 50,567) |
Total equity | 20,046 | 11,173 |
Total liabilities and equity | $ 25,575 | $ 15,609 |
*Derived from audited financial statements. |
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SOURCE Socket Mobile, Inc.
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