Socket Mobile Reports Third Quarter 2024 Results
Rhea-AI Summary
Socket Mobile (NASDAQ: SCKT) reported Q3 2024 financial results with revenue of $3.9 million, showing a 21% increase year-over-year but a 24% decrease from the previous quarter. The company posted a gross margin of 49% and an operating loss of $1.0 million. Operating expenses were $2.9 million, up 4% from last year but down 6% sequentially. The company completed a $1.0 million convertible note financing in August 2024 to support industrial market expansion. Cash balance stood at $2.9 million, up from $2.8 million at 2023-end. The company announced compatibility of its products with iOS 18 and iPhone 16.
Positive
- 21% year-over-year revenue growth to $3.9 million
- Gross margin improved to 49% from 44.2% year-over-year
- Operating expenses decreased 6% sequentially to $2.9 million
- Cash balance increased to $2.9 million from $2.8 million at year-end 2023
- Secured $1.0 million in convertible note financing
Negative
- 24% sequential revenue decline from $5.1 million in Q2
- Operating loss of $1.0 million, up 93% from previous quarter's $0.5 million loss
- Revenue performance below company projections
- Slower than expected new product evaluation affecting revenue
News Market Reaction – SCKT
On the day this news was published, SCKT declined 8.87%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Third Quarter 2024 Financial Highlights:
- Revenue of
$3.9 million 21% increase compared to$3.2 million 24% sequential decrease compared to$5.1 million - Gross margin of
49% versus44.2% in the prior year's quarter and50.9% in the preceding quarter. - Operating expenses were
$2.9 million 4% increase compared to the prior year's period and a decrease of6% compared to$3.1 million - Operating loss amounted to
$1.0 million 26% from a loss of$1.4 million 93% from a loss of$0.5 million - Cash balance on September 30, 2024 was approximately
$2.9 million $2.8 million $2.1 million $1.0 million
"Our Q3 revenue was lower than projected. We also experienced slower, albeit positive evaluation of our new products, which delayed the associated revenue," said Kevin Mills, President, and Chief Executive Officer.
"To support our expansion into the industrial market, we completed a
"We look forward to your participation in the upcoming conference call, where we will discuss the company's progress with its new products and market expansion." 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 computers 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 | Nine months ended | |||
2024 | 2023 | 2024 | 2023 | |
Revenue | $ 3,872 | $ 3,206 | $ 13,932 | $ 12,635 |
Cost of revenue | 1,975 | 1,788 | 6,946 | 6,493 |
Gross margin | 1,897 | 1,418 | 6,986 | 6,142 |
Gross margin percent | 49.0 % | 44.2 % | 50.1 % | 48.6 % |
Research & development | 1,162 | 1,207 | 3,602 | 3,643 |
Sales & marketing | 1,122 | 1,002 | 3,308 | 3,014 |
General & administrative | 644 | 608 | 2,128 | 2,131 |
Total operating expenses | 2,928 | 2,817 | 9,038 | 8,788 |
Operating loss | (1,031) | (1,399) | (2,052) | (2,646) |
Interest expense, net | (84) | (76) | (229) | (170) |
Income tax benefit (expense) | -- | 150 | -- | (16) |
Net loss | ||||
Net loss per share: | ||||
Basic | $ (0.30) | $ (0.34) | ||
Fully diluted | $ (0.30) | $ (0.34) | ||
Weighted average shares outstanding: Basic Fully diluted |
7,600 7,600 |
7,320 7,320 |
7,542 7,542 |
7,197 7,197 |
Socket Mobile, Inc. | ||
Condensed Summary Balance Sheets | ||
(Amounts in Thousands) | ||
(Unaudited) Sept 30, 2024 | December 31, | |
Cash | $ 2,913 | $ 2,827 |
Accounts receivable | 1,441 | 1,700 |
Inventories | 5,250 | 5,409 |
Deferred costs on shipments to distributors Other current assets | 266 472 | 323 441 |
Property and equipment, net | 2,824 | 3,033 |
Deferred tax assets | 10,112 | 10,112 |
Intangible assets, net | 1,464 | 1,559 |
Operating leases right-of-use assets | 2,730 | 3,088 |
Other long-term assets | 249 | 250 |
Total assets | $ 27,721 | $ 28,742 |
Accounts payable and accrued liabilities | $ 2,116 | $ 2,185 |
Subordinated convertible notes payable, net of discount | 150 | 150 |
Subordinated convertible notes payable, net of discount-related party | 3,830 | 2,836 |
Deferred revenue on shipments to distributors | 688 | 826 |
Deferred service revenue | 34 2,941 | 33 3,292 |
Total liabilities | 9,759 | 9,322 |
Common stock | 69,213 | 68,391 |
Accumulated deficit | (50,213) | (47,933) |
Treasury stock | (1,038) | (1,038) |
Total equity | 17,962 | 19,420 |
Total liabilities and equity | $ 27,721 | $ 28,742 |
*Derived from audited financial statements. |
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SOURCE Socket Mobile, Inc.
FAQ
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