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
July 29, 2015
(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 July 29, 2015, Socket Mobile, Inc., issued a press release reporting its results for the three and six months ended June 30, 2015. 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 July 29, 2015, titled "Socket Mobile Reports Profitable Second Quarter and Six Months Results". |
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: July 29, 2015 | /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 July 29, 2015, titled "Socket Mobile Reports Profitable Second Quarter and Six Months Results". |
“In the second quarter, our cordless barcode scanner revenue comprised 88 percent of total quarterly revenue and reached a record $3,947,000, up from $3,686,000 in the same quarter a year ago. This record barcode scanner revenue in the second quarter included two larger deployments totaling $400,000, compared to the prior year quarter which included three larger deployments totaling $900,000. When these larger deployments are factored out, the underlying growth run rate in our cordless barcode scanner sales was 27 percent year over year.
“We believe 2015 should be another year of growth for Socket Mobile, primarily driven by mobile point of sale as well as an expanding Socket Mobile product portfolio and maturing mobile markets. We believe we are well positioned in our targeted markets and remain focused on increasing our profitability and building the business for further growth in 2016,” Mills concluded.
Conference
Call
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. The conference ID is 13612963#. The call will also be carried
live and available via replay through a link on Socket’s website at www.socketmobile.com. From the home page, choose “About
Socket”/“Investor Relations”/“Conference Calls and Events.” A transcript will be posted on the Company’s
website within a few days of the call.
About Socket Mobile, Inc.
Founded in 1992, Socket Mobile is a leading innovator of data capture solutions for enhanced productivity in retail point of sale, field service, healthcare, and other mobile markets. Socket Mobile’s portfolio includes cordless handheld barcode scanners for tablets and smartphones. Socket Mobile’s revenue is primarily driven by 3rd party developer deployment of barcode enabled mobile applications. Socket Mobile has a robust network of over 1,400 registered developers using its software developer kit to tightly integrate and enable sophisticated barcode scanning into their applications. 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, Twitter @socketmobile or subscribe to sockettalk.socketmobile.com, the company’s official blog.
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 mobile computer and data collection products, including details on the timing, distribution and market acceptance of new 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 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 and SoMo are registered trademarks of Socket Mobile, Inc. All other trademarks and trade names contained herein may be those of their respective owners. © 2015 Socket Mobile, Inc. All rights reserved.
Socket Mobile Contact: Investor Relations Contact:
David Dunlap Todd Kehrli or Jim Byers
Chief Financial Officer MKR Group, Inc.
510/933-3035 323/468-2300
dave@socketmobile.com sckt@mkr-group.com
– Financial tables to follow –
Socket Mobile, Inc.
Summary Statements of Operations (Unaudited)
(Amounts in Thousands except per share amounts)
Three
months ended June 30, | Six
months ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenue | $ | 4,485 | $ | 4,391 | $ | 8,491 | $ | 8,186 | ||||||||
Cost of revenue | 2,370 | 2,490 | 4,568 | 4,662 | ||||||||||||
Gross margin | 2,115 | 1,901 | 3,923 | 3,524 | ||||||||||||
Gross margin percent | 47 | % | 43 | % | 46 | % | 43 | % | ||||||||
Research & development
| 550 | 586 | 1,125 | 1,140 | ||||||||||||
Sales & marketing | 609 | 527 | 1,227 | 1,003 | ||||||||||||
General & administrative | 467 | 512 | 1,071 | 1,033 | ||||||||||||
Total operating expenses | 1,626 | 1,625 | 3,423 | 3,176 | ||||||||||||
Interest (income) expense, net | 80 | 175 | 155 | 311 | ||||||||||||
Deferred income tax expense | 8 | 8 | 16 | 16 | ||||||||||||
Net income | $ | 401 | $ | 93 | $ | 329 | $ | 21 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.07 | $ | 0.02 | $ | 0.06 | $ | 0.00 | ||||||||
Fully diluted | $ | 0.07 | $ | 0.02 | $ | 0.06 | $ | 0.00 | ||||||||
Weighted average
shares outstanding: Basic Fully diluted |
5,545 5,911 |
4,916 5,162 | 5,529 5,961 | 4,907 4,961 |
Reconciliation of GAAP Net Income to Income Before Interest, Taxes, Depreciation and Amortization (EBITDA) (Unaudited)
Three
months ended June 30, | Six
months ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net income GAAP | $ | 401 | $ | 93 | $ | 329 | $ | 21 | ||||||||
Interest expense, net | 80 | 175 | 155 | 311 | ||||||||||||
Income tax expense | 8 | 8 | 16 | 16 | ||||||||||||
Depreciation | 49 | 58 | 99 | 123 | ||||||||||||
Amortization of intangibles | — | 15 | — | 30 | ||||||||||||
Stock compensation expense | 50 | 64 | 97 | 116 | ||||||||||||
Net income EBITDA | $ | 588 | $ | 413 | $ | 696 | $ | 617 |
Socket Mobile, Inc.
Condensed Summary Balance Sheets
(Amounts in Thousands)
June
30, 2015 (Unaudited) | December 31, 2014* | |||||||
Cash | $ | 830 | $ | 633 | ||||
Accounts receivable | 1,946 | 1,897 | ||||||
Inventories | 621 | 957 | ||||||
Other current assets | 90 | 125 | ||||||
Property and equipment, net | 207 | 245 | ||||||
Goodwill | 4,427 | 4,427 | ||||||
Other assets | 91 | 86 | ||||||
Total assets | $ | 8,212 | $ | 8,370 | ||||
Accounts payable and accrued liabilities | $ | 2,814 | $ | 3,535 | ||||
Bank line of credit | 816 | 816 | ||||||
Subordinated line of credit | 600 | 600 | ||||||
Convertible notes payable | 753 | 753 | ||||||
Deferred income on shipments to distributors | 972 | 979 | ||||||
Deferred service revenue | 177 | 214 | ||||||
Other liabilities | 461 | 444 | ||||||
Common stock | 61,980 | 61,719 | ||||||
Accumulated deficit | (60,361 | ) | (60,690 | ) | ||||
Total Liabilities and Equity | $ | 8,212 | $ | 8,370 |
*Derived from audited financial statements.
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