Exhibit
99.1
Socket
Mobile Reports Profitable Growth for the Third Quarter and Nine Months ended September 30, 2019
NEWARK,
Calif., – October 24, 2019 - Socket Mobile, Inc. (NASDAQ: SCKT), a leading innovator
of data capture and delivery solutions for enhanced productivity, today reported financial results for its 2019 third quarter
and nine months ended September 30, 2019.
Revenue
for the third quarter of 2019 was $5.0 million, an increase of 20 percent compared to revenue of $4.1 million for the same quarter
a year ago. Cordless barcode scanner revenue was $4.8 million for the third quarter of 2019, an increase of 17 percent over the
same quarter a year ago. Net income for the third quarter of 2019 was $94,000 or $0.01 per share, compared to a net loss of $45,000
or $0.01 per share a year ago.
Gross
profit margins for the third quarter of 2019 were 52.9 percent, compared to margins of 52.6 percent for the third quarter a year
ago.
Operating
expenses for the third quarter of 2019 were $2.5 million compared to operating expenses of $2.2 million for the same quarter a
year ago, representing an increase in operating expenses of 14 percent.
For
the nine months ended September 30, 2019, revenue was $14.7 million, an increase of 19 percent compared to revenue of $12.3 million
for the same period a year ago. Net income for the nine months ended September 30, 2019 was $0.2 million or $0.04 per share compared
to a net loss of $0.4 million or $0.07 per share in the year ago period.
Gross
profit margins for the nine months ended September 30, 2019 were 52.3 percent, compared to 51.8 percent for the same period in
2018. Operating expenses for the nine months ended September 30, 2019 were $7.3 million, an increase of 6 percent compared to
operating expenses of $6.8 million in the same period a year ago.
Cash
and cash equivalents were $0.9 million at September 30, 2019 compared to $1.1 million at December 31, 2018. Stockholders’
Equity at September 30, 2019 was $13.0 million compared to $12.4 million at December 31, 2018.
Kevin
Mills, president and chief executive officer, commented, “We are pleased with both our quarter over quarter and year over
year growth rate of approximately 20% and the general underlying strength of our business. Our growth in Q3 was helped by increased
sales in Japan, where a Japanese government program, which subsidized retail system upgrades, ended in Q3. Systems ordered under
this program must be delivered by December 2019. Sales in the EMEA region were also stronger, which resulted in our total international
revenue being 34% of our Q3 revenue.
“Our
growth continues to be driven by the development and deployment pace of our registered developers who integrate our barcode scanning
capabilities into their applications. We will continue to promote our Capture SDK with the use of developer tools and provide
responsive support to our growing developer community as needed.
“Profitable
growth has strengthened our balance sheet and provided the working capital we need to support future growth,” Mr. Mills
concluded.
Conference
Call
Management
of Socket Mobile will hold a conference call and webcast today at 2 PM Pacific (5 PM Eastern) to discuss the quarterly results
and outlook for the future. The dial-in number to access the call from the U.S. is (888) 424-8151 using passcode 9022984. From
international locations, obtain the local dial-in number through your web browser at http://web.meetme.net/r.aspx?p=11&a=UHJRZjYQMtcbJz
A
live and replay audio webcast of the conference call can be accessed through a link on Socket Mobile’s website at www.socketmobile.com. From
the home page, select “Investor Relations”/ and “Conference Calls and Events.”
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
Socket
is a registered trademark of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective
owners.
©
2019, Socket Mobile, Inc. All rights reserved.
–
Financial tables to follow –
Socket Mobile, Inc.
Summary Statements of Operations (Unaudited)
(Amounts
in Thousands)
| | |
Three months ended Sept 30, | |
Nine months ended Sept 30, |
| | |
2019 | |
2018 | |
2019 | |
2018 |
| Revenue | |
$ | 4,980 | | |
$ | 4,137 | | |
$ | 14,668 | | |
$ | 12,310 | |
| Cost of revenue | |
| 2,344 | | |
| 1,960 | | |
| 7,003 | | |
| 5,937 | |
| Gross profit | |
| 2,636 | | |
| 2,177 | | |
| 7,665 | | |
| 6,373 | |
| Gross profit percent | |
| 52.9 | % | |
| 52.6 | % | |
| 52.3 | % | |
| 51.8 | % |
| Research and development | |
| 1,015 | | |
| 885 | | |
| 2,906 | | |
| 2,749 | |
| Sales and marketing | |
| 785 | | |
| 739 | | |
| 2,312 | | |
| 2,211 | |
| General and administrative | |
| 707 | | |
| 584 | | |
| 2,053 | | |
| 1,873 | |
| Total operating expenses | |
| 2,507 | | |
| 2,208 | | |
| 7,271 | | |
| 6,833 | |
| Operating income (loss) | |
| 129 | | |
| (31 | ) | |
| 394 | | |
| (460 | ) |
| Interest expense, net | |
| 25 | | |
| 32 | | |
| 83 | | |
| 100 | |
| Net income (loss) before income taxes | |
| 104 | | |
| (63 | ) | |
| 311 | | |
| (560 | ) |
| Income taxes - current | |
| 0 | | |
| 0 | | |
| 0 | | |
| 0 | |
| Income tax expense (benefit) | |
| 10 | | |
| (18 | ) | |
| 85 | | |
| (152 | ) |
| Net income (loss) | |
$ | 94 | | |
$ | (45 | ) | |
$ | 226 | | |
$ | (408 | ) |
Net income (loss) per share:
Basic
Fully Diluted
| |
| $ 0.02 $ 0.01 | | |
| $ (0.01) $ (0.01) | | |
| $ 0.04 $ 0.04 | | |
| $ (0.07) $ (0.07) | |
Weighted average shares outstanding:
Basic
Diluted | |
| 5,999 6,317 | | |
| 5,883 5,883 | | |
| 5,980 6,237 | | |
| 6,166 6,166 | |
Socket Mobile, Inc.
Condensed Summary Balance Sheets
(Amounts in Thousands)
| | |
September 30, 2019
(Unaudited) | |
December 31, 2018* |
| Cash | |
$ | 881 | | |
$ | 1,085 | |
| Accounts receivable, net | |
| 3,062 | | |
| 2,367 | |
| Inventories, net | |
| 2,528 | | |
| 2,272 | |
| Deferred cost on shipments to distributors | |
| 258 | | |
| 165 | |
| Other current assets | |
| 405 | | |
| 308 | |
| Property and equipment, net | |
| 817 | | |
| 689 | |
| Goodwill | |
| 4,427 | | |
| 4,427 | |
| Deferred tax assets | |
| 5,669 | | |
| 5,781 | |
Operating leases capitalized
| |
| 1,021 | | |
| 1,266 | |
| Other assets | |
| 214 | | |
| 237 | |
| Total assets | |
$ | 19,282 | | |
$ | 18,597 | |
| Accounts payable and accrued liabilities | |
$ | 2,425 | | |
$ | 2,046 | |
| Bank line of credit | |
| 1,429 | | |
| 1,317 | |
| Term loan | |
| 458 | | |
| 833 | |
| Deferred revenue on shipments to distributors | |
| 622 | | |
| 397 | |
| Deferred service revenue | |
| 80 | | |
| 65 | |
Operating lease liabilities
| |
| 1,233 | | |
| 1,511 | |
| Other liabilities | |
| 12 | | |
| 23 | |
| Total liabilities | |
| 6,259 | | |
| 6,192 | |
Common stock and additional paid-in capital
| |
| 60,922 | | |
| 60,530 | |
| Accumulated deficit | |
| (47,899 | ) | |
| (48,125 | ) |
| Total stockholders’ equity | |
| 13,023 | | |
| 12,405 | |
| Total liabilities and equity | |
$ | 19,282 | | |
$ | 18,597 | |
*Derived from audited financial statements.
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