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Socket Mobile Reports Fourth Quarter 2023 and Full Year Results

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FREMONT, Calif., March 5, 2024 /PRNewswire/ — Socket Mobile, Inc. (NASDAQ: SCKT), a leading provider of data capture and delivery solutions for enhanced workplace productivity, today reported financial results that are determined in accordance with generally accepted accounting principles in the United States (“GAAP”) for the three and twelve months ended December 31, 2023.

Fourth Quarter 2023 Financial Highlights:

Revenue of $4.4 million, a 15% decrease compared to $5.2 million in the comparable prior year quarter and a 37% increase sequentially compared to $3.7 million in Q3 2023.Gross margin of 52.8% compared with 49.3% in the prior year quarter and 44.2% in the preceding quarter.Operating loss was $475,000 compared to an operating loss of $152,000 a year ago and an operating loss of $1,399,000 in the preceding quarter.Diluted earnings per share of $0.08 compared to diluted earnings per share of $0.06 a year ago and a net loss per share of ($0.16) in the prior quarter.

Full Year 2023 Financial Highlights:

Revenue for the full year of 2023 was $17.0 million versus $21.2 million in 2022, a decrease of 20% year-over-year.Gross margin for 2023 was 49.7% compared to 48.8% in 2022.Operating loss was $3.1 million in 2023 compared to operating loss of $446,000 in 2022.Diluted loss per share of $0.27, compared to diluted earnings per share of $0.01 in the prior year.

“Our financial performance in 2023 was below our expectations. However, we believe that the $17M in reported revenue does not accurately reflect the underlying demand for our products and services. In 2023, our sales through distribution partners to resellers and end customers totaled $19.1 million, making a 2.8% decrease from the $19.7M in sales through distributor partners to resellers and end customers in 2022. While the demand softened in 2023, the timing of shipments to distributors in late 2022 had a positive impact on 2022 and a negative impact on 2023, contributing to the more dramatic decline. Additionally, reductions in distributor inventory and adjustments to distribution reserves also impacted the reported revenue for 2023,” said Kevin Mills, President and Chief Executive Officer.

“In Q4 2023, we saw a 37% increase in reported revenue compared to Q3. Additionally, our gross margin improved by 8.5% compared to Q3. Moving forward, we aim to align our reported sales more closely with the underlying demand for our products and services,” continued Mills.

“In 2023, we achieved significant milestones aimed at driving sustained growth in the data capture market. Our latest offerings include SocketCam, XtremeScan, DuraScan Wear, and NFC products.”

“The SocketCam C860, our cutting-edge camera scanning solution, offers an upgrade path for users on both iOS and Android platforms with advanced capabilities such as swift and accurate reading of damaged barcodes, even in low-light conditions, using the phone’s camera.”

“Our XtremeScan marks our initial entry into an expansive industrial barcode market. It enables the use of iPhones and iOS applications in rugged work environments, combining robustness with top-tier protection. Additionally, our DuraScan Wear products feature a glove-like, wearable design, enhancing speed and flexibility for scanning tasks in warehouse, manufacturing, and distribution settings,” continued Mills.

“Our SocketScan S550 NFC Mobile Wallet Reader is Apple-certified to comply with Apple’s VAS Protocol, enabling seamless integration with Apple Wallet. Additionally, it meets Sony’s FeliCa standards and CIPURSE international security standards. Similarly, our SocketScan S370 Universal NFC & QR Code Mobile Wallet Reader received certification from NFC Forum. These certifications empower our NFC products to cater to a wide range of needs, including VAS Passes, Mobile Driver’s Licenses (mDL), and non-traditional payments such as cryptocurrency,” continued Mills.

“We remain committed to returning profitable operating results as we continue to innovate and strive to deliver world-class data capture solutions to our application partners,” concluded Mills.

Conference Call
The management of Socket Mobile will hold a conference call today at 2 P.M. Pacific (5 P.M. Eastern) to discuss the quarterly and year-end results and outlook for the future. The dial-in number to access the live conference call is (800) 237-1091, toll-free from within the U.S., or (848) 488-9280 (toll).

About Socket Mobile, Inc. 
Socket Mobile is a leading provider of data capture and delivery solutions for enhanced productivity in workforce mobilization. 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 and contactless readers/writers. The primary revenue drivers are mobile applications servicing the specialty retailer, field service, digital ID, transportation, and manufacturing markets. Socket Mobile has a network of thousands of developers who use its software developer tools to add sophisticated data capture to their mobile applications. Socket Mobile is headquartered in Fremont, CA, and can be reached at +1-510-933-3000 or www.socketmobile.com. Follow Socket Mobile on LinkedIn and Twitter, and keep up with our latest News and Updates.

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 regarding new mobile computer and data collection products, including details on the timing, distribution, and market acceptance of the products and statements predicting trends, sales, 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 the new products or may not be successful in doing so, the risk that acceptance of our new 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 Mobile Investor Contact:
Lynn Zhao
Chief Financial Officer
510-933-3016
lynn@socketmobile.com 

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

© 2024, Socket Mobile, Inc. All rights reserved.

–      Financial tables to follow –

 

Socket Mobile, Inc.

Condensed Summary Statements of Operations

(Amounts in thousands except per share amounts)

Year ended Dec 31,

Three months ended Dec 31,

(Unaudited)

2023

 

2022*

(Unaudited)
2023

 

2022*

Revenue

$ 17,034

$ 21,238

$    4,398

$    5,171

Cost of revenue

8,571

10,872

2,078

2,623

Gross profit

8,463

10,366

2,320

2,548

   Gross profit percent

49.7 %

48.8 %

52.8 %

49.3 %

Research & development

4,832

4,362

1,188

1,091

Sales & marketing

4,016

3,638

1,003

909

General & administrative

2,736

2,812

605

700

   Total operating expenses

11,584

10,812

2,796

2,700

Operating income (loss)

(3,121)

(446)

(476)

(152)

Interest expense

(242)

(175)

(72)

(41)

Income (loss) before income taxes

(3,363)

(621)

(548)

(193)

Deferred income tax benefit (expense)

1,444

708

1,460

708

Net income (loss)

$  (1,919)

$        87

$      912

$       515

Net income (loss) per share:

   Basic

$    (0.27)

$     0.01

$     0.11

$      0.06

   Fully diluted

$    (0.27)

$     0.01

$     0.08

$      0.06

Weighted average shares outstanding:

   Basic

7,230

7,185

7,327

7,135

   Fully diluted

7,230

7,533

9,486

8,246

*Derived from audited financial statements. 

 

Socket Mobile, Inc.

Condensed Summary Balance Sheets

(Amounts in Thousands)

(Unaudited)

December 31,
2023

December 31,
2022*

Cash

$        2,827

$     3,624

Accounts receivable

1,700

2,660

Inventories

5,409

5,602

Deferred costs on shipments to distributors

323

266

Other current assets

441

617

Property and equipment, net

3,033

1,657

Deferred tax assets

10,112

8,668

Intangible assets, net

1,559

1,694

Operating leases right-of-use assets

3,088

3,560

Other long-term assets

250

250

Total assets

$      28,742

$   28,598

Accounts payable and accrued liabilities

$        2,185

$     2,407

Bank non-formula loan

125

Subordinated convertible notes payable, net of discount

150

147

Subordinated convertible notes payable, net of discount-related party

2,836

1,231

Deferred revenue on shipments to distributors

826

595

Deferred service revenue

33

34

Operating lease liabilities

3,292

3,737

Total liabilities

9,322

8,276

Common stock

68,391

67,165

Accumulated deficit

(47,933)

(46,013)

Treasury stock

(1,038)

(830)

Total equity

19,420

20,322

Total liabilities and equity

$     28,742

$   28,598

*Derived from audited financial statements. 

 

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SOURCE Socket Mobile, Inc.

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Huawei Launches Over 20 All-New Xinghe Intelligent Network Offerings to Amplify Industrial Intelligence

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SHANGHAI, Sept. 21, 2024 /CNW/ — During HUAWEI CONNECT 2024, Leon Wang, President of Huawei’s Data Communication Product Line, announced more than 20 all-new Xinghe Intelligent Network offerings globally at the summit themed “Xinghe Intelligent Network, Amplify Industrial Intelligence”. These purpose-built offerings contribute to an AI network ecosystem and help customers seize opportunities for intelligent development and maximize intelligent productivity.

With the development of AI technologies, the world is advancing from digital transformation to intelligent transformation. All industries are quickly adopting AI technologies to create new use cases, for example, self-driving cars, intelligent diagnosis and treatment, and intelligent train inspection. All of these are significantly improving the efficiency and experience of our work and daily lives.

The advent of the intelligent era is driving networks into intelligent ones. Huawei has been making joint efforts with partners to lead research and practices of intelligent networks. That’s why Huawei constantly upgrades its Xinghe Intelligent Network offerings to help customers grasp opportunities for intelligent development, build new intelligent network infrastructure, and maximize intelligent productivity in the intelligent era. Key highlights include the following:

Xinghe Intelligent Campus focuses on AI-enabled, experience-centric campus network construction, ensuring zero freezing for audio and video applications, zero degradation on services, and zero waiting for interactions.Xinghe Intelligent WAN introduces a wide range of intelligent technologies to intelligently schedule millions of flows and precisely optimize service experience.Xinghe Intelligent Fabric adopts the AI Turbo engine to improve network throughput, enhancing foundation model training efficiency.Xinghe Intelligent Network Security integrates AI technologies into network security detection, accurately and rapidly identifying threats.

To support network solutions in various scenarios, Huawei released more than 20 featured offerings globally. Examples include the industry’s first 100 Tbps fixed-form Ethernet data center switch, the industry’s first 51.2 Tbps liquid-cooled fixed-form data center switch, the industry’s first AI router, high-quality 10 Gbps campus switches and Wi-Fi 7 APs, Intelligent SASE Branch Security Solution, and the industry’s first IP Autonomous Driving Network Solution. All these offerings are designed to help customers with greater business returns.

As the intelligent era calls for intelligent networks, Huawei will continue to drive the development of intelligent networks and upgrade its Xinghe Intelligent Network products and solutions, ultimately helping global customers to stride towards the intelligent era and reap more benefits.

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SOURCE Huawei

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HUAWEI CONNECT 2024 | Huawei Unveils the Brand-New Xinghe Intelligent Fabric Solution, Powering the AI Era

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SHANGHAI, Sept. 21, 2024 /PRNewswire/ — At HUAWEI CONNECT 2024, over 300 industry leaders, experts, and scholars gathered for the data center network session themed “Xinghe Intelligent Fabric, Powering the AI Era.” The event featured discussions on the evolution and technological advancements of data center networks. During the session, Arthur Wang, President of Data Center Network Domain at Huawei’s Data Communication Product Line, introduced the newly upgraded Xinghe Intelligent Fabric solution. This cutting-edge solution aims to establish a data center network characterized by one map for intelligent operations and maintenance (O&M), one network for diverse computing, and one platform for simplified deployment, providing a robust network infrastructure to support enterprises’ digital and intelligent transformations.

In his keynote speech, Arthur Wang outlined the emerging trends in data center network development. He emphasized that in the AI era, data center networks require both a “brilliant brain” and “resilient bones.” The newly launched Xinghe Intelligent Fabric solution is designed to deliver a powerful network infrastructure tailored for the AI era, featuring:

One Map for Intelligent O&M: Zero Management Concerns

Huawei’s exclusive network digital map enables rapid cross-data center and cross-vendor fault identification within minutes. Additionally, the NetMaster network large model facilitates AI-driven O&M, eliminating manual intervention and ensuring zero management concerns.

One Network for Diverse Computing: Zero Service Interruptions

The Xinghe Intelligent Fabric supports various application scenarios, including intelligent computing, general-purpose computing, and storage. The innovative Network Scale Load Balancing (NSLB) algorithm increases network throughput to 95% and boosts AI training efficiency by over 10%. With the exclusive iReliable three-level fast switchover capability, it achieves sub-millisecond switchover, guaranteeing zero service interruptions.

One Platform for Simplified Deployment: Zero Configuration Errors

By employing digital twins to simulate networks in advance and verify configurations post-deployment, the solution ensures 100% accuracy in network changes. By harnessing network-security convergence capabilities, AI creates an intelligent security matrix to analyze millions of security policies, achieving zero configuration errors.

Looking ahead, Huawei will continue to collaborate with industry partners to enhance research and innovation in data center networks, promote intelligent upgrades, and create greater value for the industry.

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SOURCE Huawei

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Cultivating a Culture of Peace: International Day of Peace Statement by Education Cannot Wait Executive Director Yasmine Sherif

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NEW YORK, Sept. 21, 2024 /CNW/ — The longing for peace transcends time, geography and religion. Based on justice, human rights and universal values outlined in the UN Charter, a culture of peace brings us all together in our common agenda for humanity. We can only co-exist by aligning ourselves with such a world order.

On today’s International Day of Peace, we call on world leaders to end conflict and embrace a culture of peace as enshrined in the UN Charter and related international law.

As the UN General Assembly outlined in the Declaration and Programme of Action on a Culture of Peace  a quarter of a century ago, this must include: “Respect for life, human rights and fundamental freedoms; the promotion of non-violence through education, dialogue and cooperation; commitment to peaceful settlement of conflicts; and adherence to freedom, justice, democracy, tolerance, solidarity, cooperation, pluralism, cultural diversity, dialogue and understanding at all levels of society and among nations.”

Educating for peace starts at home and continues in school through years of education. This takes place during the most formative years of a child learning about their identity, ethics, values, conscience, courage and compassion. Wherever there has been a failure in imparting on children the imperative for peace, the world is turned upside down. This is a global failure with no geographical boundaries.

Today, we live in a world of unprecedented violence, armed conflict and chaos. All the genuine and heartfelt commitments made in 1945 in the UN Charter seem to be fading away. Children and adolescents are the most vulnerable, the least protected, and the most impacted. They bear the brunt. 

Global conflicts killed three times as many children in 2023 than in the previous year, according to the United Nations. The number of forcibly displaced people reached an unprecedented 120 million in May 2024.

“In 2023, the United Nations verified a record 32,990 grave violations against 22,557 children in 26 conflict zones, a 35% increase from the previous year,” according to recent analysis by the UN.

We can end these violations and invest in a constructive co-existence globally. We can use our resources for education, rather than for wars. In classrooms around the world, girls and boys who have withstood the wrath of war can rebuild their hopes and their lives. Cultivating a culture of peace is possible. The financial resources exist. The choice as to how we use them is ours.

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SOURCE Education Cannot Wait

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