Company News: Page (1) of 1 - 10/25/11 Email this story to a friend. email article Print this page (Article printing at MyDmn.com).print page facebook

Socket Mobile Reports Positive EBITDA and Revenue of $4.7 Million for Q311

Q3 Revenue up 8 Percent Sequentially and up 37 Percent Year-Over-Year (October 25, 2011)

NEWARK, CA -- (Marketwire) -- 10/25/11 -- Socket Mobile, Inc. (NASDAQ: SCKT), an innovative provider of mobile productivity products, today reported financial results for the 2011 third quarter ended September 30, 2011.

Revenue for the third quarter of 2011 was $4.7 million, an increase of 37 percent compared to revenue of $3.4 million for the same quarter a year ago and an increase of 8 percent over revenue of $4.4 million in the immediately preceding quarter. Net loss for the third quarter of 2011 was $727,000, or a loss of $0.16 per share, compared to a net loss of $768,000, or $0.20 per share, in the third quarter of 2010 and a net loss of $392,000, or a loss of $0.09 per share, in the immediately preceding quarter. The net loss in the third quarter of 2011 included $564,000, or $0.13 per share, of debt discount amortization associated with senior convertible notes. The notes were fully converted into common stock as of the end of third quarter. The portion of the net loss attributable to stock option expensing in the third quarter of 2011 was $189,000, or $0.04 per share, compared to $189,000, or $0.05 per share, in the third quarter of 2010.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of 2011 was a profit of $142,000, or $0.03 per share compared to an EBITDA net loss of $401,000, or a loss of $0.11 per share, in the third quarter of 2010 and an EBITDA profit of $73,000, or $0.02 per share, in the immediately preceding quarter.

Operating expenses for the third quarter of 2011 were $2.1 million, flat compared to operating expenses of $2.1 million for the same quarter a year ago, and higher by 5 percent compared to operating expenses of $2.0 million in the immediately preceding quarter.


Cash and cash equivalents were $0.9 million at September 30, 2011 compared to $1.0 million at June 30, 2011 and $0.5 million at December 31, 2010.

Kevin Mills, president and chief executive officer, commented, "We achieved continued sequential growth in both revenue and EBITDA in the third quarter, with increase in total revenue driven by record quarterly sales of our SoMo handheld computers as well as continued sequential growth in sales of our family of barcode scanners. We significantly improved delivery performance of our handheld computers. We shipped over 5,000 units in the quarter. Third quarter revenue did not include over $800,000 of products shipped too late in the quarter to distribution for revenue recognition. We recognize revenue when products clear distributor inventory. Overall demand for our handheld computers continues to grow. We are benefitting from Hewlett-Packard's discontinuation worldwide of its model 200 series iPAQs. Socket's handheld computers are compatible with the discontinued HP units and are an excellent replacement alternative. Demand for our barcode scanners is also increasing worldwide, helped by the recent introduction of our Apple certified barcode scanners for use with Apple smartphones and tablets.

"During the quarter, we also further strengthened the company financially. The balance of our convertible notes issued in November 2010 were converted by the holder into common stock during the third quarter, and earlier this month we were pleased to announce the activation of a $2.5 million bank revolving line of credit that we intend to use to finance anticipated growth. We are focused on continued positive momentum," Mills concluded.

For the nine months ended September 30, 2011, revenue was $13.1 million, an increase of 20 percent compared to revenue of $10.9 million in the year ago period. Net loss was $2.0 million, or a loss of $0.49 per share, compared to a net loss of $2.4 million, or a loss of $0.63 per share for the same period one year ago. The net loss for the nine months ended September 30, 2011 includes $1.0 million or $0.25 per share, of debt discount amortization expense associated with senior convertible notes that were converted into common stock as of the end of the third quarter. The portion of the net loss attributable to stock option expensing for the nine months ended September 30, 2011 was $549,000, or $0.13 per share, compared to $509,000, or $0.13 per share, for the nine months ended September 30, 2010.

Conference Call
Management of Socket will hold a conference call and web cast today at 2 P.M. PT 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. Access code for the replay is 286# followed by conference ID 379972#. The call will also be carried live and available via replay through a link on Socket's website at www.socketmobile.com. From the home page, choose "About Socket"/"Investor Relations"/"Conference Calls and Events." A transcript will be posted within a few days of the call.

About Socket Mobile, Inc.
With more than 19 years of experience in the Automatic Identification and Data Capture market, Socket makes mobile computing and productivity work. The company offers a family of handheld computers and an extensive portfolio of AIDC peripherals designed specifically for business mobility deployments and to enable productivity increases and drive operational efficiencies in healthcare, hospitality and other vertical markets. The company also offers OEM solutions for the mobile device market. Socket is headquartered in Newark, Calif. and can be reached at 510-933-3000 or www.socketmobile.com. Follow Socket Mobile on Twitter @socketmobile (http://twitter.com/socketmobile) and subscribe to sockettalk.socketmobile.com, the company's official blog.

Socket is a registered trademark of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective owners. © 2011, Socket Mobile, Inc. All rights reserved.

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 with respect to the distribution, timing and market acceptance of our products, and statements predicting trends, sales, order activity, backlog and market 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 shipments of our products may be delayed or not happen 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 integrator program and current distribution channels may choose not to distribute our products or may not be successful in doing so; the risk that acceptance of our 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 does not undertake any obligation to update any forward-looking statements.

--Financial tables to follow--

Socket Mobile, Inc. Summary Statements of Operations (Unaudited) (Amounts in Thousands) Three months ended Nine months ended Sept 30, Sept 30, ------------------ ------------------ 2011 2010 2011 2010 -------- -------- -------- -------- Revenue $ 4,681 $ 3,414 $ 13,073 $ 10,875 Cost of revenue 2,684 2,052 7,735 6,403 -------- -------- -------- -------- Gross profit 1,997 1,362 5,338 4,472 -------- -------- -------- -------- Gross profit percent 43% 40% 41% 41% -------- -------- -------- -------- Research and development 687 581 1,975 1,821 Sales and marketing 933 973 2,619 3,172 General and administrative 504 515 1,631 1,668 Amortization of intangibles 15 15 45 45 -------- -------- -------- -------- Total operating expenses 2,139 2,084 6,270 6,706 Interest expense, net 13 38 58 140 Debt discount amortization 564 -- 1,033 -- Deferred tax provision 8 8 24 8 -------- -------- -------- -------- Net loss $ (727) $ (768) $ (2,047) $ (2,382) -------- -------- -------- -------- Net loss per share: Basic and diluted $ (0.16) $ (0.20) $ (0.49) $ (0.63) -------- -------- -------- -------- Weighted average shares outstanding: Basic and Diluted 4,440 3,798 4,203 3,794 -------- -------- -------- --------

Reconciliation of GAAP Net Loss to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (Unaudited)

Three months ended Nine months ended Sept 30, Sept 30, ------------------ ------------------ 2011 2010 2011 2010 -------- -------- -------- -------- Net loss GAAP $ (727) $ (768) $ (2,047) $ (2,382) Interest expense, net 13 38 58 140 Income tax expense 8 8 24 8 Depreciation 80 117 257 358 Amortization of intangibles 15 15 45 45 Debt discount amortization 564 -- 1,033 -- Stock compensation expense 189 189 549 509 -------- -------- -------- -------- Net profit (loss) EBITDA $ 142 $ (401) $ (81) $ (1,322) -------- -------- -------- -------- Socket Mobile, Inc. Condensed Summary Balance Sheets (Amounts in Thousands) September 30, 2011 December 31, (Unaudited) 2010* ------------- ------------- Cash $ 907 $ 461 Restricted cash -- 711 Accounts receivable 2,615 814 Inventories 1,288 1,699 Other current assets 192 128 Property and equipment, net 309 471 Goodwill 4,427 4,427 Intangible technology 165 210 Other assets 86 146 ------------- ------------- Total assets $ 9,989 $ 9,067 ------------- ------------- Accounts payable and accrued liabilities $ 4,796 $ 4,404 Notes payable net of debt discount -- 330 Deferred income on shipments to distributors 1,171 674 Deferred service revenue 447 521 Other liabilities 249 245 Common stock and additional paid in capital 60,155 57,675 Accumulated deficit (56,829) (54,782) ------------- ------------- Total Liabilities and Equity $ 9,989 $ 9,067 ------------- -------------

*Derived from audited financial statements.


Copyright @ Marketwire

Page: 1


Related Keywords: Socket Mobile, Computers/Peripherals, Home, Family, Internet, Tablets, Handheld, Family, Communications, Web, Smart Phone, Family, Research, Blogs/videoblogs, Social Media, USA, Marketwire, Inc., , HP, Financial, Discount, Internet Technology, Business, Family, Other,

HOT THREADS on DMN Forums
Content-type: text/html  Rss  Add to Google Reader or
Homepage    Add to My AOL  Add to Excite MIX  Subscribe in
NewsGator Online 
Real-Time - what users are saying - Right Now!

Our Privacy Policy --- @ Copyright, 2015 Digital Media Online, All Rights Reserved