Socket Mobile Reports Record Profits in 2015

Feb 17, 2016, 16:01 ET from Socket Mobile, Inc.

NEWARK, Calif., Feb. 17, 2016 /PRNewswire/ -- Socket Mobile, Inc. (OTC: SCKT), a leading innovator of data capture and delivery solutions for enhanced productivity, today reported record profits for the fourth quarter and full year ended December 31, 2015.

Revenue for the 2015 full year totaled $18.4 million, an increase of eight percent compared to revenue of $17.0 million for 2014. Net income for 2015 was $1.8 million, or $0.33 per share, compared to net income of $0.4 million, or $0.09 per share, in 2014. Annual gross margins on revenue increased to 48.6 percent in 2015 from 43.6 percent in 2014. Annual operating expenses for 2015 were $6.8 million, an increase of five percent compared to annual operating expenses for 2014 of $6.5 million.

Revenue for the fourth quarter of 2015 was $5.4 million, an increase of 38 percent compared to revenue of $3.9 million for the same quarter a year ago. Net income for the fourth quarter of 2015 was $958,000, or $0.17 per share, compared to a net loss of $21,000, or a loss of $0.00 per share, in the fourth quarter of 2014. Gross margins on revenue increased to 51.5 percent for the fourth quarter of 2015, compared to gross margins on revenue of 44.6 percent for the same quarter a year ago. Operating expenses for the fourth quarter of 2015 were $1.75 million, an increase of four percent compared to fourth quarter 2014 operating expenses of $1.68 million.

Kevin Mills, president and chief executive officer, commented, "The year-over-year improvement in net income for 2015 reflects revenue growth, improved margins, and moderate growth in operating expenses.

"Our revenue growth in 2015 reflects the strength of our cordless barcode scanning business, which is driven by growth in mobile business applications running on Apple, Android and Windows based smartphones and tablets. These applications are developed by registered third party developers that use our software developer kit to integrate our products into their applications to solve a business problem or improve a business process. Mobile point of sale applications using iPads for small businesses was our fastest growing segment these past two years and continues to validate our application driven business model.

"In 2016, we will expand our family of rugged barcode scanners with our DuraScan product line, an IP54 rating designed for use with smartphones and tablets used in harsh environments.  We will also be adding our Socket Mobile DuraCase that securely attaches our attachable barcode scanners to a smartphone or iPod as a one-handed, dedicated barcode scanning solution required in many inventory based applications. The Socket Mobile DuraCase also enables charging for both the iPod and the scanner from a single charger. Our primary goals for 2016 are to continue to attract and support mobile application developers with data collection products designed for the mobile markets and to achieve continued growth and profitability," Mills concluded. 

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 (877) 407-9210 from within the U.S. or (201) 689-8049 from international locations.  A replay will be available via telephone for a week following the call at (877) 660-6853 from within the U.S., or (201) 612-7415 from international locations.  The conference ID for the replay is 13629953#.  The call will also be carried live and available via replay through a link on Socket Mobile's website at www.socketmobile.com. From the home page, select "About Socket"/"Investor Relations"/ and "Conference Calls and Events."

About Socket Mobile, Inc.
Founded in 1992, Socket Mobile is a leading innovator of data capture and delivery solutions for enhanced productivity in retail point of sale, field service, healthcare, and other mobile markets. 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. Socket Mobile has a robust network of over 1,400 developers registered to use its software developer's kit to add sophisticated barcode scanning to 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 and Twitter @socketmobile and subscribe to SocketTalk the company's official 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 and SoMo are registered trademarks of Socket Mobile, Inc.  All other trademarks and trade names contained herein may be those of their respective owners. © 2016 Socket Mobile, Inc.  All rights reserved.

Socket Mobile Contact:

Investor Relations Contact:

David Dunlap                                                                            

Todd Kehrli or Jim Byers

Chief Financial Officer                                

MKR Group, Inc

510/933-3035                                                                

323/468-2300

dave@socketmobile.com                                                 

sckt@mkr-group.com

– Financial tables to follow –

Socket Mobile, Inc.

Condensed Summary Statements of Operations

(Amounts in thousands except per share amounts)


Year ended

Dec 31,

Three Months ended

Dec 31,


(Unaudited)

2015

2014*

(Unaudited)

2015

2014*

Revenue

$   18,400

$   17,021

$   5,391

$   3,913

Cost of revenue

9,465

9,608

2,617

2,168

Gross profit

8,935

7,413

2,774

1,745

        Gross profit percent

49%

44%

51%

45%

Research and development

2,323

2,333

621

581

Sales and marketing

2,497

2,198

660

650

General and administrative

1,986

1,951

466

451

     Total operating expenses

6,806

6,482

1,747

1,682

Interest expense, net

(280)

(467)

(61)

(76)

Deferred tax (expense)

(32)

(32)

(8)

(8)

Net income (loss)

$     1,817

$        432

$      958

$      (21)

Net income (loss) per share:





     Basic

$       0.33

$       0.09

$      0.17

$   (0.00)

     Fully diluted

$       0.30

$       0.08

$      0.16

$   (0.00)






Weighted average shares outstanding:





     Basic

5,555

5,006

5,598

5,274

     Fully diluted

5,975

5,251

6,041

5,274






*Derived from audited financial statements.

 

Socket Mobile, Inc.

Condensed Summary Balance Sheets

(Amounts in Thousands)



December 31,


 (Unaudited)

2015

 

    2014*

Cash

$           938

$           633

Accounts receivable

2,359

1,897

Inventories

1,326

957

Other current assets

87

125

Property and equipment, net

475

245

Goodwill

4,427

4,427

Other assets

76

86

Total Assets

$         9,688

$        8,370

Accounts payable and accrued liabilities

$         2,817

$        3,535

Bank line of credit

0

816

Subordinated line of credit

500

600

Convertible notes payable

753

753

Net deferred revenue on shipments to distributors

1,645

979

Deferred service revenue

125

214

Other liabilities

505

444

Common stock

62,216

61,719

Accumulated deficit

(58,873)

(60,690)

Total Liabilities and Equity

$        9,688

$        8,370

*Derived from audited financial statements.                                      

 

SOURCE Socket Mobile, Inc.



RELATED LINKS

http://www.socketmobile.com