Socket Mobile Reports Third Quarter Results
Socket Mobile Reports Third Quarter Results |
[22-October-2020] |
NEWARK, Calif., Oct. 22, 2020 /PRNewswire/ -- Socket Mobile, Inc. (NASDAQ: SCKT), a leading innovator of data capture and delivery solutions for enhanced productivity, today reported third quarter 2020 results. Socket Mobile and its auditors did not complete the annual review process related to goodwill impairment, which is part of the quarter-end closing procedures, in time to include in this release. The review takes longer than usual due to uncertainties and complications associated with the impact of the COVID-19 pandemic. The results that are being released today assume there is no goodwill impairment. All numbers that would be negatively impacted by an adjustment to goodwill are asterisked. The results will be reported as soon as the goodwill review is completed or in the Form 10-Q for Q3. Revenue for the third quarter of 2020 was $4.1 million, a decrease of 17 percent over revenue of $5.0 million for the same quarter a year ago and an increase of 51 percent sequentially from revenue of $2.7 million in the immediately preceding quarter. Net income* for the third quarter of 2020 was $424,000*, or $0.07* per share, compared to net income of $94,000 in the third quarter of 2019, and net loss of $768,000 in the immediately preceding quarter. Revenue for the nine months ended September 30, 2020 was $11 million, a decrease of 24.7 percent from revenue of $14.7 million in the same period a year ago. Net loss for the nine months ended September 30, 2020 was $434,000*, compared to net income of $226,000 for the same period a year ago. Gross margins on revenue for the three-month and nine-month periods ended September 30, 2020 was 55.3 percent and 53 percent, respectively, compared to gross margins on revenue of 52.9 percent and 52.3 percent, respectively, for the corresponding periods in 2019. -------------------------------------------- Operating expenses for the third quarter of 2020 were $1.8 million, a decrease of 27.2 percent compared to operating expenses of $2.5 million for the same quarter a year ago, and a decrease of 16 percent sequentially from the immediately preceding quarter. Operating expenses for the nine months ended September 30, 2020 were $6.3 million, a decrease of 13 percent compared to operating expenses of $7.3 million for the same period a year ago. "We were pleased to report revenue growth in Q3. We believe our Q3 results demonstrated our ability to adjust quickly to the extreme economic challenges posed by the COVID-19 pandemic and resulting uncertainties. We offset our lower revenues by proactive cost reductions, delays in non-critical discretionary spending and capital expenditures while maintaining critical longer-term projects. We also developed and implemented strategies to strengthen our balance sheet, including raising additional capital through debt financing. These actions allowed us to navigate the last two quarters well – returning to profitability in Q3, after experiencing abrupt and dramatic declines in economic and business activity in Q2," said Kevin Mills, president and chief executive officer. "The future will remain uncertain until the global pandemic is under much better control. Our Q3 results, coupled with our stronger balance sheet, have put us in a good position to withstand the uncertainty and rapidly changing economic situation. We will continue to serve our many application centric customers, who continue to service their customers with our products in these difficult times. We will continue to manage our expenses tightly while limiting our investment to long term strategically important projects. We would like to thank our employees for their continued commitment and hard work and thank our business partners for their support. We look forward to a stronger 2021," Mills continued. "I need to point out the Q3's net income* may be impacted by adjustment to our goodwill, which is currently under review. Unfortunately, this annual review was not started in time and therefore, could not be completed before today's announcement. We will report the results in the Form 10-Q that will be filed on or around November 13th," Mills concluded. -------------------------------------------- Conference Call About Socket Mobile, Inc. Forward-Looking Statements Socket Mobile Investor Contact: Socket is a registered trademark of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective owners. -- Financial tables to follow --
View original content:http://www.prnewswire.com/news-releases/socket-mobile-reports-third-quarter-results-301158348.html SOURCE Socket Mobile, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: NASDAQ-SMALL:SCKT |
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