News Column

Socket Mobile Reports First Quarter 2014 Results

May 8, 2014



By a News Reporter-Staff News Editor at Computer Weekly News -- Socket Mobile, Inc. (OTC: SCKT), an innovative provider of mobile productivity solutions, reported its financial results for the first quarter ended March 31, 2014.

Revenue for the first quarter of 2014 was $3.8 million, a decrease of 11 percent compared to revenue of $4.3 million for the same quarter a year ago, and an increase of 3 percent sequentially from revenue of $3.7 million in the immediately preceding quarter. Net loss for the first quarter of 2014 was $72,000, or a loss of $0.01 per share, compared to net income of $75,000, or $0.02 per share, in the first quarter of 2013 and a net loss of $418,000, or a loss of $0.09 per share, in the immediately preceding quarter. Gross profit on revenue for the first quarter of 2014 was 42.8 percent compared to 40.0 percent for the same quarter a year ago and 41.1 percent for the immediately preceding quarter.

Operating expenses for the first quarter of 2014 were $1.55 million, flat compared to operating expenses of $1.55 million for the same quarter a year ago, and a decrease of 13 percent compared to operating expenses of $1.78 million in the immediately preceding quarter. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), a non-GAAP measure of operating results, was $0.2 million or $0.04 per share compared to EBITDA earnings of $0.3 million or $0.07 per share for the first quarter a year ago and an EBITDA loss of $0.1 million, or $0.03 per share for the immediately preceding quarter.

Kevin Mills, president and chief executive officer, commented, "Our first quarter results reflect sequential improvement in revenue, margins, and operating expense, and we achieved positive EBITDA and income from operations for the quarter. We continue to experience growth in revenue from our cordless barcode scanning products, which reached record levels in the first quarter. Barcode scanning revenue grew 17 percent over the first quarter last year and 16 percent over the immediately preceding quarter, and represented 72 percent of total first quarter revenue, compared to 55 percent of total revenue for the first quarter last year and 64 percent in the immediately preceding quarter.

"Our cordless barcode scanning revenue growth is driven by the increasing number of applications supporting our cordless barcode scanning products in the market from our growing base of registered application developers. Mobile point of sale is a key emerging market, as traditional cash registers are being replaced with tablets and other electronic devices.

"Developer registrations for our barcode scanning software developer kit (SDK) continued to increase. More than 800 developers have registered to use our SDK, which enables application developers to easily integrate our SocketScan barcode scanning software into their applications and provide their customers with tools to edit and process 1D and 2D barcode information using our barcode scanners.

"Our SoMo handheld computer revenue met our expectations during the first quarter, representing 16 percent of our revenue.

"We expect our cordless barcode scanning business to drive continued growth in 2014, enabling us to achieve our goal of profitable 2014 operating results," Mills concluded.

Keywords for this news article include: Software, Socket Mobile Inc..

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Source: Computer Weekly News


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