Socket Mobile Reports Third Quarter 2024 Results
Third Quarter 2024 Financial Highlights:
- Revenue of
$3.9 million , reflecting a 21% increase compared to$3.2 million for the prior year's quarter, and a 24% sequential decrease compared to$5.1 million for the preceding quarter. - Gross margin of 49% versus 44.2% in the prior year's quarter and 50.9% in the preceding quarter.
- Operating expenses were
$2.9 million , reflecting a 4% increase compared to the prior year's period and a decrease of 6% compared to$3.1 million in the preceding quarter. - Operating loss amounted to
$1.0 million , a decrease of 26% from a loss of$1.4 million in the prior year's quarter, and an increase of 93% from a loss of$0.5 million in the preceding quarter. - Cash balance on
September 30, 2024 was approximately$2.9 million compared to$2.8 million at the end of 2023 and$2.1 million at the end of the previous quarter. A convertible note financing of$1.0 million was completed inAugust 2024 .
"Our Q3 revenue was lower than projected. We also experienced slower, albeit positive evaluation of our new products, which delayed the associated revenue," said
"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
Conference Call
Management of
About
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
Socket Mobile Investor Contact:
Chief Financial Officer
510-933-3016
lynn@socketmobile.com
© 2024,
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Condensed Summary Statements of Operations (Unaudited) |
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( Amounts in thousands except per share amounts) |
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Three months ended |
Nine months ended |
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2024 |
2023 |
2024 |
2023 |
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Revenue |
$ 3,872 |
$ 3,206 |
$ 13,932 |
$ 12,635 |
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Cost of revenue |
1,975 |
1,788 |
6,946 |
6,493 |
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Gross margin |
1,897 |
1,418 |
6,986 |
6,142 |
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Gross margin percent |
49.0 % |
44.2 % |
50.1 % |
48.6 % |
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Research & development |
1,162 |
1,207 |
3,602 |
3,643 |
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Sales & marketing |
1,122 |
1,002 |
3,308 |
3,014 |
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General & administrative |
644 |
608 |
2,128 |
2,131 |
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Total operating expenses |
2,928 |
2,817 |
9,038 |
8,788 |
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Operating loss |
(1,031) |
(1,399) |
(2,052) |
(2,646) |
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Interest expense, net |
(84) |
(76) |
(229) |
(170) |
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Income tax benefit (expense) |
-- |
150 |
-- |
(16) |
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Net loss |
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Net loss per share: |
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Basic |
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$ (0.30) |
$ (0.34) |
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Fully diluted |
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$ (0.30) |
$ (0.34) |
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Weighted average shares outstanding: Basic Fully diluted |
7,600 7,600 |
7,320 7,320 |
7,542 7,542 |
7,197 7,197 |
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Condensed Summary Balance Sheets |
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(Amounts in Thousands) |
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(Unaudited)
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Cash |
$ 2,913 |
$ 2,827 |
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Accounts receivable |
1,441 |
1,700 |
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Inventories |
5,250 |
5,409 |
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Deferred costs on shipments to distributors Other current assets |
266 472 |
323 441 |
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Property and equipment, net |
2,824 |
3,033 |
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Deferred tax assets |
10,112 |
10,112 |
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Intangible assets, net |
1,464 |
1,559 |
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Operating leases right-of-use assets |
2,730 |
3,088 |
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Other long-term assets |
249 |
250 |
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Total assets |
$ 27,721 |
$ 28,742 |
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Accounts payable and accrued liabilities |
$ 2,116 |
$ 2,185 |
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Subordinated convertible notes payable, net of discount |
150 |
150 |
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Subordinated convertible notes payable, net of discount-related party |
3,830 |
2,836 |
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Deferred revenue on shipments to distributors |
688 |
826 |
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Deferred service revenue |
34 2,941 |
33 3,292 |
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Total liabilities |
9,759 |
9,322 |
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Common stock |
69,213 |
68,391 |
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Accumulated deficit |
(50,213) |
(47,933) |
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(1,038) |
(1,038) |
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Total equity |
17,962 |
19,420 |
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Total liabilities and equity |
$ 27,721 |
$ 28,742 |
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*Derived from audited financial statements. |
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