NEWARK, CA — (Marketwire) — 07/26/11 — Socket Mobile, Inc. (NASDAQ: SCKT), an innovative provider of mobile productivity products, today reported financial results for the 2011 second quarter ended June 30, 2011.
Revenue for the second quarter of 2011 was $4.4 million, up 19 percent compared to revenue of $3.7 million for the same quarter a year ago and up 8 percent compared to $4.0 million in the immediately preceding quarter. Net loss for the second quarter of 2011 improved to $392,000, or a loss of $0.09 per share, compared to a net loss of $575,000, or a loss of $0.15 per share, in the second quarter of 2010 and a net loss of $928,000, or $0.24 per share, in the immediately preceding quarter.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2011 was $73,000, or $0.02 per share, compared to an EBITDA net loss of $234,000, or $0.06 per share, in the second quarter of 2010 and an EBITDA net loss of $295,000, or $0.07 per share, in the immediately preceding quarter.
Operating expenses for the second quarter of 2011 were $2.0 million, flat compared to operating expenses of $2.0 million for the same quarter a year ago, and a decrease of 3 percent compared to operating expenses of $2.1 million in the immediately preceding quarter.
Unrestricted cash and cash equivalents were approximately $1.0 million at June 30, 2011, compared to $0.8 million at March 31, 2011 and $0.5 million at December 31, 2010.
Kevin Mills, president and chief executive officer, commented, “We achieved positive earnings before interest, taxes, depreciation and amortization, or EBITDA, and continued sequential revenue growth in the second quarter, reflecting our continued progress in growing sales and reducing operating expenses. Shipments of our handheld computers increased by more than 1,000 units from the first quarter, benefiting from increased supply, and we are also seeing overall demand begin to increase from Hewlett-Packard-s decision to discontinue its model 200 series iPAQs around the world.
“Total orders received in the second quarter for our handheld computers and bar code scanning products grew to $5.3 million and we ended the quarter with an order backlog of $3.4 million, of which $2.6 million in orders were for handheld computers. While shipments of our handheld computers continued to be constrained by a shortage of LCD computer screens, we saw significant improvement in the second quarter and expect these shortages to be mostly resolved in the third quarter, significantly increasing our product availability.
“We recently released our software developers kit for Apple products, which we expect to contribute to sales of our cordless barcode scanners in the second half of the year. This highly versatile barcode scanning tool enables Apple developers to easily add commercial-grade rapid and robust barcode scanning capabilities to their applications for Apple devices. Our SocketScan10 software also supports applications running on operating systems from Google (Android), Research in Motion (Blackberry) and Windows/Windows Mobile. We expect to release an Apple version of our cordless hand scanner during the third quarter. We are focused on continued positive momentum and remain committed to reaching sustainable profitable operating levels,” Mills concluded.
For the six months ended June 30, 2011, revenue was $8.4 million, an increase of 12 percent compared to $7.5 million in the six month period a year ago. Net loss was $1.3 million, or a loss of $0.32 per share, compared to a net loss of $1.6 million, or a loss of $0.43 per share for the same period one year ago. Operating expenses for the six months ended June 30, 2011 were $4.1 million, compared to operating expenses of $4.6 million for the same period a year ago.
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 375518#. The call will also be carried live and available via replay through a link on Socket-s website at . 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.
With more than 18 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 .
Socket is a registered trademark of Socket Mobile, Inc. All other trademarks and trade names contained herein may be those of their respective owners. © 2011, Socket Mobile, Inc. All rights reserved.
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 regarding new mobile computer, data collection and OEM products, including details on 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. 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 our new products may be delayed or not rollout 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 application partners 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.
–Financial tables to follow–
Reconciliation of GAAP Net Loss to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (Unaudited)
*Derived from audited financial statements.
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