NEWARK, Calif., February 16, 2022 /PRNewswire/ — Socket Mobile, Inc. (NASDAQ: SCKT), a leading provider of data capture and delivery solutions for enhanced workplace productivity, today announced strong financial results in accordance with generally accepted accounting principles in United States (“GAAP”) for the three and twelve month periods ended December 31, 2021.

Fourth quarter 2021 financial highlights:

  • Revenues increased by 31% to reach $6.1 millioncompared to $4.7 million year-over-year quarter and decreased 3% sequentially from $6.3 million in the third quarter of 2021.
  • Gross margin decreased to 52.1% from 53.2% for the prior year quarter and 54.2% for the immediately preceding quarter.
  • The operating result was $0.7 million compared to an operating result of $0.5 million a year ago and $1.0 million in the previous quarter.
  • Diluted earnings per share were $0.11 compared to $0.22 a year ago, which included a non-cash gain of $0.15 per action on the extinguishment of the debt related to the cancellation of the Paycheck Protection Program loan, and $0.07 in the previous quarter.
  • The cash balance was $6.1 million at the end of the year compared to $2.1 million one year ago.

Financial highlights for the year 2021:

  • Revenue for the full year of 2021 was 23.2 million vs. $15.7 million in 2020, a 48% year-over-year increase.
  • Gross margin for 2021 was 53.6% compared to 53.1% in 2020.
  • The operating result was $2.7 million compared to $76,000 in 2020 excluding a non-cash goodwill impairment charge of $4.4 million.
  • Diluted earnings per share were $0.48which included a $0.21 tax benefit per share, compared to a loss per share of $0.51 in the previous year.
  • Generated $2.1 million operating cash flow compared to $0.8 million in 2020.

“We had a strong fourth quarter and achieved 48% full-year revenue growth in 2021,” said Kevin Mills, President and CEO. “Demand for our mobile data capture products in retail applications remains our primary source of revenue, as we continue to expand our business in other market segments.”

Mills continued: “We are pleased with the strong results achieved in 2021. We have grown our business, strengthened our financial position and continued to invest in growth initiatives. I am proud of the team for what we have achieved.

“We expect supply constraints to persist. Accordingly, we have proactively and strategically managed inventory. We are confident that our focus on managing delivery and supply issues will allow us to continue to meet the needs of our customers.

“Our performance in 2021 provides a solid foundation to seize growth opportunities as we remain focused on executing our strategy of delivering data capture solutions in collaboration with our development partners. We will continue to improve developer tools, improve product offerings, and control expenses.

“Finally, we are pleased to announce that our Board has approved a $1.8 million share buyback program. The buyback will be done in the open market via a 10b5-1 trading plan. The buyback program will expire in March 2023“, concluded Mills.

Conference call
Socket Mobile management will host a conference call and webcast today at 2 p.m. Pacific (5 p.m. Eastern) to discuss quarterly results and future outlook. The dial-in number to access the call is (888) 424-8151 passcode 9368 227. From international locations, get the local dial-in number through your web browser at http://web.meetme.net/r.aspx?p=11&a=UsOJvoQqBNSwhW. A live audio webcast and replay of the conference call can be accessed via a link https://onlineexperiences.com/Launch/QReg/ShowUUID=A4D53B46-3963-4487-8A21-00495BAB275C&LangLocaleID=1033

About Socket Mobile, Inc.
Socket Mobile is a leading provider of data capture and delivery solutions for increased productivity in workforce mobilization. Socket Mobile’s revenues are primarily generated through the deployment of barcode-enabled third-party mobile applications that integrate Socket Mobile’s wireless barcode scanners and contactless reader/writers. Mobile applications serving the specialty retail, field service, transportation, and manufacturing markets are the primary sources of revenue. Socket Mobile has a network of thousands of developers who use its software development tools to add sophisticated data capture to their mobile applications. Socket Mobile is headquartered in Newark, California. and can be reached at +1-510-933-3000 or www.socketmobile.com. Follow Socket Mobile on Facebook, Twitter @socketmobile and on our blog sockettalk.

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. These forward-looking statements include, but are not limited to, statements regarding new mobile computers and data collection products, including details about 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. These statements involve risks and uncertainties, and actual results could differ materially from the results anticipated in these forward-looking statements due to a number of factors, including, but not limited to, the risk that our new products may be delayed or not. deployment as planned, if at all, due to technological, business or financial factors, including the availability of necessary working capital, the risk that market acceptance and sales opportunities will not occur as expected, the risk that our application partners and current distribution channels may choose not to distribute new products or fail to do so, the risk that acceptance of our new products in vertical application markets will not occur as expected, and other risks described in our most recent Forms 10-K and 10-Q reports filed with the Securities and Exchange Commission.

Socket Mobile Investor Contact:
Lynn Zhao
Financial director
510-933-3016
[email protected]

Media Contact:
David Holmes
[email protected]

Socket is a registered trademark of Socket Mobile. All other trademarks and trade names contained herein may be the property of their respective owners.

© 2022, Socket Mobile, Inc. All rights reserved.

– Financial tables to follow –

Socket Mobile, Inc.

Condensed Summary Statements of Earnings (unaudited)

(Amounts in thousands except per share amounts)



Year ended December 31

Three months ended December 31


(Unaudited)

2021

2020

(Unaudited)
2021

2020

Income

$23,199

$15,700

$6,114

$4,655

Revenue cost

10,763

7,365

2,929

2,179

Gross profit

12,436

8,335

3,185

2,476

Gross profit percentage

53.6%

53.1%

52.1%

53.2%

research

3,965

3,140

1,047

719

Sales and Marketing

3,002

2,849

820

700

General Administration

2,772

2,270

630

529

Goodwill impairment charges

4,427

Total operating expenses

9,739

12,686

2,497

1,948

Operating profit (loss)

2,697

(4,351)

688

528






Extinguishment of debt income and other income

1,119

1,049

Interest expense

(199)

(98)

(49)

(46)

Other income

65

55

Deferred tax benefit

1,903

51

299

52

Net profit (loss)

$4,466

($3,279)

$993

$1,583

Net earnings (loss) per share:





Basic

$0.58

$(0.51)

$0.13

$0.24

fully diluted

$0.48

$(0.51)

$0.11

$0.22

Weighted average number of shares outstanding:

Basic

fully diluted

6,991

8,923

6,036

6,036

7,184

8,883

6,084

7,033

Socket Mobile, Inc.

Condensed summary balance sheets

(Amounts in thousands)



(Unaudited)

The 31st of December,
2021

The 31st of December,
2020*

Cash

$6,096

$2,122

Accounts Receivable

2,576

2,113

Inventories

5,155

3,196

Deferred charges on shipments to distributors

Other current assets

159

395

170

335

Property and equipment, net

1,069

848

Deferred tax assets

7,960

6,057

Intangible assets, net

1,814

Operating lease right-of-use assets

211

609

Other long-term assets

140

159

Total assets

$25,575

$15,609

Accounts payable and accrued liabilities

$2,862

$1,748

Non-formula bank loan

625

Subordinated convertible bonds payable, net of discount

144

170

Subordinated convertible bonds payable, net of discount-related portion

1,201

1,272

Deferred revenue on deliveries to distributors

407

451

Deferred service revenue

Operating lease debts

32

258

54

741

Total responsibilities

5,529

4,436

Ordinary actions

66 147

61,740

Accumulated deficit

(46,101)

(50,567)

Total equity

20,046

11,173

Total Liabilities and Equity

$25,575

$15,609

*Derived from audited financial statements.

SOURCE Socket Mobile, Inc.