UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
__________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
October 23, 2014
(Date of earliest event reported)
__________________________
SOCKET MOBILE, INC.
(Exact name of registrant as specified in its charter)
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
39700 Eureka
Drive
Newark, CA 94560
(Address of principal executive offices, including zip code)
(510) 933-3000
(Registrant's
telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[
] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations
and Financial Condition.
On October 23, 2014, Socket Mobile, Inc., issued a press release reporting its results for the three and nine months ended September 30, 2014. A copy of the press release is furnished as Exhibit 99.1.
Item 9.01 Financial Statements
and Exhibits.
(d) Exhibits.
| Exhibit Number | Description | ||
| 99.1 | Text of press release, dated October 23, 2014, titled "Socket Mobile Reports Third Quarter Revenue Growth and Profitability". |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SOCKET MOBILE, INC. | |||
| Date: October 23, 2014 | /s/ David W. Dunlap | ||
| David W. Dunlap | |||
| Vice President, Finance and Administration
and Chief Financial Officer | |||
EXHIBIT INDEX
| Exhibit Number | Description | |||||||||||||||
| 99.1 | Text of press release, dated October 23, 2014, titled "Socket Mobile Reports Third Quarter Revenue Growth and Profitability". | |||||||||||||||
“We continue to focus on bringing new innovative products to market that address the requirements of our customers and expand and improve our family of barcode scanning products. Our cordless barcode scanners are ergonomically designed for ease of use while walking around and are available for linear imager scanning, linear laser barcode scanning and 2D barcode scanning. These scanners all connect to a smartphone or tablet over Bluetooth and do not need connecting wires. Socket offers standard products in five vibrant colors and ruggedized products where more durable scanners are needed. Our 7-Series models are designed as stand-alone handheld barcode scanners and our 8-Series models are designed to be attached to the back of a smartphone for single handed barcode scanning. All of our products use the same SocketScan software and may be used with an application without requiring a software change or different version of the application, making it easy for the developer and the customer to accommodate a variety of barcode scanners with the same application. Our SocketScan software enables customers to scan rapidly and accurately, and to edit and direct the scanned data into an application of choice.
“Our recently released QX Stand complements our CHS 7Qi and 7Xi scanners and is designed for a retail environment. As part of a mobile point of sale solution, the Stand provides customers a secure and convenient scanning and charging location and also features a quick release for effortless switching to mobile scanning mode.
“We remain focused on building on our leadership position in the cordless hand scanning market, and with our broad range of innovative mobile solutions, we believe Socket is well positioned to capitalize on the significant potential for further growth in the mobile applications markets,” Mills concluded.
Conference
Call
Management of Socket Mobile will hold a conference call and web cast 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 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. Conference ID is 13592730#. The call will also be carried live and available
via replay through a link on Socket Mobile’s website at www.socketmobile.com. From the home page, choose “About Socket”/“Investor
Relations”/“Conference Calls and Events.”
About Socket Mobile, Inc.
Founded in 1992, Socket Mobile is a leading innovator of mobile devices and productivity tools for retail POS, field service, healthcare, and other mobile markets. Our portfolio includes wireless handheld and hands-free barcode scanners for tablets and smartphones; durable handheld computers and accessories; and OEM solutions for the mobile device market. 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.socketmobile.com, the company’s official blog.
| Investor Relations Contact: | Socket Mobile Investor Contact: |
| Todd Kehrli / Jim Byers | David Dunlap |
| MKR Group, Inc. | Chief Financial Officer |
| 323-468-2300 | 510-933-3035 |
| sckt@mkr-group.com | dave@socketmobile.com |
Socket and SoMo are trademarks or registered trademarks of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective owners. © 2014, Socket Mobile,Inc. All rights reserved.
Financial tables follow.
Socket Mobile, Inc.
Summary Statements of Operations (Unaudited)
(Amounts in Thousands)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Revenue | $ | 4,922 | $ | 3,292 | $ | 13,108 | $ | 11,992 | ||||||||
| Cost of revenue | 2,778 | 2,009 | 7,440 | 7,197 | ||||||||||||
| Gross profit | 2,144 | 1,283 | 5,668 | 4,795 | ||||||||||||
| Gross profit percent | 44 | % | 39 | % | 43 | % | 40 | % | ||||||||
| Research and development | 612 | 578 | 1,752 | 1,697 | ||||||||||||
| Sales and marketing | 545 | 499 | 1,548 | 1,643 | ||||||||||||
| General and administrative | 467 | 395 | 1,500 | 1,305 | ||||||||||||
| Total operating expenses | 1,624 | 1,472 | 4,800 | 4,645 | ||||||||||||
| Interest expense, net | 81 | 124 | 391 | 329 | ||||||||||||
| Deferred tax provision | 8 | 8 | 24 | 24 | ||||||||||||
| Net income (loss) | $ | 431 | $ | (321 | ) | $ | 453 | $ | (203 | ) | ||||||
| Net income (loss) per share: Basic Diluted | $ $ | 0.09 0.08 | (0.07 (0.07 | ) ) |
$0.09 $0.09 |
$ (0.04 $ (0.04 | ) ) | |||||||||
| Weighted average shares outstanding: Basic Diluted |
4,935 5,417 | 4,867 |
4,916 5,100 |
4,864 4,864 | ||||||||||||
Reconciliation of GAAP Net Income (Loss) to Income Before Interest, Taxes, Depreciation and Amortization (EBITDA) (Unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net income (loss) GAAP | $ | 431 | $ | (321 | ) | $ | 453 | $ | (203 | ) | ||||||
| Interest expense, net | 81 | 124 | 392 | 329 | ||||||||||||
| Deferred income tax expense | 8 | 8 | 24 | 24 | ||||||||||||
| Depreciation | 43 | 56 | 166 | 159 | ||||||||||||
| Amortization of intangibles | 0 | 15 | 30 | 45 | ||||||||||||
| Stock option compensation expense | 49 | 51 | 152 | 202 | ||||||||||||
| Net income (loss) EBITDA | $ | 612 | $ | (67 | ) | $ | 1,217 | $ | 556 | |||||||
Socket Mobile, Inc.
Condensed Summary Balance Sheets
(Amounts in Thousands)
| September 30, 2014 (Unaudited) | December 31, 2013* | |||||||
| Cash | $ | 740 | $ | 606 | ||||
| Accounts receivable | 1,718 | 1,427 | ||||||
| Inventories | 866 | 1,105 | ||||||
| Other current assets | 113 | 94 | ||||||
| Property and equipment, net | 248 | 295 | ||||||
| Goodwill | 4,427 | 4,427 | ||||||
| Intangible technology | 0 | 30 | ||||||
| Other assets | 117 | 118 | ||||||
| Total assets | $ | 8,229 | $ | 8,102 | ||||
| Accounts payable and accrued liabilities | $ | 3,510 | $ | 4,070 | ||||
| Bank line of credit | 816 | 764 | ||||||
| Notes payable | 1,514 | 1,463 | ||||||
| Deferred income on shipments to distributors | 867 | 1,006 | ||||||
| Deferred service revenue | 227 | 267 | ||||||
| Other liabilities | 435 | 399 | ||||||
| Common stock | 61,530 | 61,256 | ||||||
| Accumulated deficit | (60,670 | ) | (61,123 | ) | ||||
| Total Liabilities and Equity | $ | 8,229 | $ | 8,102 | ||||
*Derived from audited financial statements.
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