Net operating income, consisting of net income before interest and taxes, was $668,000 in the first quarter of 2017, an 11 percent increase compared to net operating income of $600,000 in the same quarter a year ago.
Net income for the first quarter of 2017 was $386,000, or $0.07 per share, compared to net income of $548,000, or $0.10 per share, in the same quarter a year ago. The decrease was due to a change in the application of tax accounting rules. Income tax expense for the 2017 full year will be covered primarily by net operating loss carryovers with minimal impact on cash.
Gross profit margin for the first quarter of 2017 increased to 51.8 percent, compared to 49.7 percent for the same quarter a year ago.
Operating expenses for the first quarter of 2017 were $2.2 million, compared to operating expenses of $1.9 million for the same quarter a year ago, reflecting added development and production resources and higher operating costs associated with growth.
Kevin Mills, president and chief executive officer, commented, “Growth in sales of our cordless barcode scanners continues to be driven by the deployment of business applications that require barcode scanning, with mobile point of sale (mPOS) continuing to be the primary driver. mPOS remains a large and underserved market and is increasingly being addressed by many venture capital funded application developers.
“Workforce mobilization around enterprise-issued smartphones and tablets running business applications is creating significant worldwide growth opportunities. We are also seeing developer activity increasing internationally, as well as in other mobile business application areas, including asset management and transportation, that represent emerging growth areas for Socket Mobile.
“Socket Mobile offers a wide range of barcode scanner choices for mobile application developers that enable them to support many different scanning requirements and solutions. We’re expanding our DuraCase offerings to add additional smartphones. We’ve released to application developers our durable Near Field Communication reader/writer, our model D600. The D600 captures data from RFID tags or from smartphones with Near Field Communications capabilities including identification, tickets and loyalty information. We expect this product to become a contributor to our revenue growth starting in 2018.
“As smartphone and tablet technology continues to evolve, we remain focused on attracting and supporting mobile application developers with data capture products designed for the mobile markets they serve and on achieving continued growth and profitability,” Mills concluded.
-- Financial tables to follow--
Socket Mobile, Inc.
Condensed Summary Statements of Operations (Unaudited)
(Amounts in Thousands except per share amounts and percentages)
Cost of revenue
|Three months ended March 31,|
| Gross profit
Gross profit percent
Research & development
Sales & marketing
General & administrative
Total operating expenses
Interest (income) expense, net
Income tax expense*
|Net income per share:
|Weighted average shares outstanding:
*Deferred tax asset valuation allowance in effect for 2016
Socket Mobile, Inc.
Condensed Summary Balance Sheets
(Amounts in Thousands)
March 31, 2017
|December 31, 2016*|
Other current assets
Property and equipment, net
Deferred tax assets
|Accounts payable and accrued liabilities
Convertible notes payable
Deferred income on shipments to distributors
Deferred service revenue
|Total liabilities and equity||$21,447||$20,639|
*Derived from audited financial statements.
A live and replay audio webcast of the conference call can be accessed through a link on Socket Mobile’s website at www.socketmobile.com. From the home page, select “About Socket”/”Investor Relations”/ and “Conference Calls and Events.”
About Socket Mobile:
Founded in 1992, Socket Mobile is a leading innovator of data capture and delivery solutions for enhanced productivity in retail point of sale, field service, transportation, manufacturing and other mobile markets. Socket Mobile’s revenue is primarily driven by the deployment of third party barcode enabled mobile applications that integrate Socket Mobile’s cordless barcode scanners. Socket Mobile has a robust network of thousands of developers registered to use its software developer’s kit to add sophisticated barcode scanning to mobile applications. Socket Mobile is headquartered in Newark, Calif. and can be reached at +1-510-933-3000 or www.socketmobile.com. Follow Socket Mobile on Facebook and Twitter @socketmobile and subscribe to SocketTalk, the company’s official blog.
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