Socket Mobile Reports Fourth Quarter 2023 and Full Year Results
Fourth Quarter 2023 Financial Highlights:
- Revenue of
$4.4 million , a 15% decrease compared to$5.2 million in the comparable prior year quarter and a 37% increase sequentially compared to$3.7 million in Q3 2023. - Gross margin of 52.8% compared with 49.3% in the prior year quarter and 44.2% in the preceding quarter.
- Operating loss was
$475,000 compared to an operating loss of$152,000 a year ago and an operating loss of$1,399,000 in the preceding quarter. - Diluted earnings per share of
$0.08 compared to diluted earnings per share of$0.06 a year ago and a net loss per share of ($0.16 ) in the prior quarter.
Full Year 2023 Financial Highlights:
- Revenue for the full year of 2023 was
$17.0 million versus$21.2 million in 2022, a decrease of 20% year-over-year. - Gross margin for 2023 was 49.7% compared to 48.8% in 2022.
- Operating loss was
$3.1 million in 2023 compared to operating loss of$446,000 in 2022. - Diluted loss per share of
$0.27 , compared to diluted earnings per share of$0.01 in the prior year.
"Our financial performance in 2023 was below our expectations. However, we believe that the
"In Q4 2023, we saw a 37% increase in reported revenue compared to Q3. Additionally, our gross margin improved by 8.5% compared to Q3. Moving forward, we aim to align our reported sales more closely with the underlying demand for our products and services," continued Mills.
"In 2023, we achieved significant milestones aimed at driving sustained growth in the data capture market. Our latest offerings include SocketCam, XtremeScan, DuraScan Wear, and NFC products."
"The SocketCam C860, our cutting-edge camera scanning solution, offers an upgrade path for users on both iOS and Android platforms with advanced capabilities such as swift and accurate reading of damaged barcodes, even in low-light conditions, using the phone's camera."
"Our XtremeScan marks our initial entry into an expansive industrial barcode market. It enables the use of iPhones and iOS applications in rugged work environments, combining robustness with top-tier protection. Additionally, our DuraScan Wear products feature a glove-like, wearable design, enhancing speed and flexibility for scanning tasks in warehouse, manufacturing, and distribution settings," continued Mills.
"Our SocketScan S550 NFC Mobile Wallet Reader is Apple-certified to comply with Apple's VAS Protocol, enabling seamless integration with Apple Wallet. Additionally, it meets Sony's FeliCa standards and CIPURSE international security standards. Similarly, our SocketScan S370 Universal NFC & QR Code Mobile Wallet Reader received certification from
"We remain committed to returning profitable operating results as we continue to innovate and strive to deliver world-class data capture solutions to our application partners," concluded Mills.
Conference Call
The 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 computer 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
Socket is a registered trademark of
© 2024,
– Financial tables to follow –
Condensed Summary Statements of Operations ( Amounts in thousands except per share amounts) |
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|
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|
Year ended |
Three months ended |
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|
(Unaudited) 2023 |
2022* |
(Unaudited) |
2022* |
Revenue |
|
|
$ 4,398 |
$ 5,171 |
Cost of revenue |
8,571 |
10,872 |
2,078 |
2,623 |
Gross profit |
8,463 |
10,366 |
2,320 |
2,548 |
Gross profit percent |
49.7 % |
48.8 % |
52.8 % |
49.3 % |
Research & development |
4,832 |
4,362 |
1,188 |
1,091 |
Sales & marketing |
4,016 |
3,638 |
1,003 |
909 |
General & administrative |
2,736 |
2,812 |
605 |
700 |
Total operating expenses |
11,584 |
10,812 |
2,796 |
2,700 |
Operating income (loss) |
(3,121) |
(446) |
(476) |
(152) |
Interest expense |
(242) |
(175) |
(72) |
(41) |
Income (loss) before income taxes |
(3,363) |
(621) |
(548) |
(193) |
Deferred income tax benefit (expense) |
1,444 |
708 |
1,460 |
708 |
Net income (loss) |
$ (1,919) |
$ 87 |
$ 912 |
$ 515 |
Net income (loss) per share: |
|
|
|
|
Basic |
$ (0.27) |
$ 0.01 |
$ 0.11 |
$ 0.06 |
Fully diluted |
$ (0.27) |
$ 0.01 |
$ 0.08 |
$ 0.06 |
Weighted average shares outstanding: |
|
|
|
|
Basic |
7,230 |
7,185 |
7,327 |
7,135 |
Fully diluted |
7,230 |
7,533 |
9,486 |
8,246 |
*Derived from audited financial statements. |
Condensed Summary Balance Sheets (Amounts in Thousands) |
||
|
||
|
(Unaudited)
|
|
Cash |
$ 2,827 |
$ 3,624 |
Accounts receivable |
1,700 |
2,660 |
Inventories |
5,409 |
5,602 |
Deferred costs on shipments to distributors |
323 |
266 |
Other current assets |
441 |
617 |
Property and equipment, net |
3,033 |
1,657 |
Deferred tax assets |
10,112 |
8,668 |
Intangible assets, net |
1,559 |
1,694 |
Operating leases right-of-use assets |
3,088 |
3,560 |
Other long-term assets |
250 |
250 |
Total assets |
$ 28,742 |
$ 28,598 |
Accounts payable and accrued liabilities |
$ 2,185 |
$ 2,407 |
Bank non-formula loan |
-- |
125 |
Subordinated convertible notes payable, net of discount |
150 |
147 |
Subordinated convertible notes payable, net of discount-related party |
2,836 |
1,231 |
Deferred revenue on shipments to distributors |
826 |
595 |
Deferred service revenue |
33 |
34 |
Operating lease liabilities |
3,292 |
3,737 |
Total liabilities |
9,322 |
8,276 |
Common stock |
68,391 |
67,165 |
Accumulated deficit |
(47,933) |
(46,013) |
|
(1,038) |
(830) |
Total equity |
19,420 |
20,322 |
Total liabilities and equity |
$ 28,742 |
$ 28,598 |
*Derived from audited financial statements. |
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