Socket Mobile Reports First Quarter Revenue Growth and Profitable Operating Results

NEWARK, Calif., April 24, 2019 /PRNewswire/ -- Socket Mobile, Inc. (NASDAQ: SCKT), a leading innovator of data capture and delivery solutions for enhanced productivity, today reported revenue growth and profitable operating results for the first quarter ended March 31, 2019.

Revenue for the first quarter of 2019 was $4.6 million, a 16 percent increase compared to revenue of $4.0 million for the same quarter a year ago and an increase of 12 percent compared to the previous quarter's revenue of $4.1 million.

Gross profit margins for both the first quarter of 2019 and 2018 were 51.8 percent. Gross profit margins were 50.3 percent in the immediately preceding quarter.

Operating expenses for both the first quarter of 2019 and 2018 were $2.35 million. Operating expenses for the immediately preceding quarter were $2.2 million.

Net income for the first quarter of 2019 was $12,000, or $0.00 per share, compared to a net loss of ($225,000), or ($0.03) per share, in the same quarter a year ago and compared to a net loss of ($163,000) in the immediately preceding quarter. EBITDA (earnings before interest, taxes, depreciation and amortization) was $269,000, or $0.05 per share in the first quarter of 2019 compared to a loss of ($82,000) or ($0.01 per share) in the first quarter a year ago and to $117,000 or $0.02 per share in the immediately preceding quarter.

Kevin Mills, president and chief executive officer, commented, "We are pleased to return to profitability.  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 growth driver. The mPOS market remains a large and underserved small business market and is increasingly being addressed by mPOS software applications running on iPad and Android tablets. We are also experiencing growth in mobile applications for commercial services, transportation and health care.

"Our SocketScan product refresh transition is essentially complete and our new products are being well accepted. Our units sold have increased in Q1 over 20 percent compared to the same quarter a year ago. Our new SocketScan products offer improved performance at similar or lower pricing. With our newest products readily available, we are well positioned to support the data capture needs of the growing mobile applications markets.

"We continue to strengthen our application developer tools, enabling easy installation of our advanced data capture software into applications running on Apple, Android or Windows mobile platforms.

"We've updated our SocketCare Extended Warranty program to provide cost-effective extensions of our standard warranty for three to five years and coverage against accidental breakage.

"Our new hardware products and developer tools enable us to sustain a strong leadership position in companion scanning," Mills concluded.

Conference Call
Management of Socket Mobile will hold a conference call and webcast today at 2 PM Pacific (5 PM Eastern) to discuss the quarterly results and outlook for the future. The dial-in number to access the call from the U.S. is (888) 424-8151 using passcode 7920004. 

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