Socket Mobile Reports Second Quarter and Six-Month Results
NEWARK, Calif., July 30, 2020 /PRNewswire/ -- Socket Mobile, Inc. (NASDAQ: SCKT), a leading innovator of data capture and delivery solutions for enhanced productivity, today reported 2020 second quarter results, which include the early stages of COVID-19 impacts.
Revenue for the second quarter of 2020 was $2.7 million, a decrease of 46 percent over revenue of $5.1 million for the same quarter a year ago and a decrease of 36 percent sequentially from revenue of $4.2 million in the immediately preceding quarter. Net loss for the second quarter of 2020 was $768,000, compared to net income of $120,000 in the second quarter of 2019, and net loss of $90,000 in the immediately preceding quarter.
Revenue for the six months ended June 30, 2020 was $6.9 million, a decrease of 28 percent from revenue of $9.7 million in the same period a year ago. Net loss for the six months ended June 30, 2020 was $858,000, compared to net income of $132,000 for the same period a year ago.
Gross margins on revenue for the three-month and six-month periods ended June 30, 2020 was 50 percent and 52 percent, respectively, compared to gross margins on revenue of 52 percent for the corresponding periods in 2019.
Operating expenses for the second quarter of 2020 were $2.2 million, a decrease of 10 percent compared to operating expenses of $2.4 million for the same quarter a year ago, and a decrease of 6 percent sequentially from the immediately preceding quarter. Operating expenses for the six months ended June 30, 2020 were $4.5 million, a decrease of 6 percent compared to operating expenses of $4.8 million for the same period a year ago.
"As anticipated, following the effects of the COVID-19 pandemic on our revenues in the first quarter of 2020, we experienced significant revenue declines in the second quarter. We expect our business to be adversely impacted by COVID-19 for the foreseeable future. In Q2, we received $1.06M in PPP loan, most of which is likely to be forgiven, and implemented cost reduction measures, enabling us to preserve cash. The Company will continue taking actions in Q3 in response to market conditions and operational disruptions," said Kevin Mills, president and chief executive officer.
"It should be noted that our first and foremost concern remains the health and safety of our employees. Accordingly, we have implemented appropriate policies and procedures to ensure that our operation is in as safe a manner as possible. We are maintaining a remote work program for all functions other than manufacturing that cannot be completed remotely. The Company has continued all business operations and is manufacturing and delivering products to our customers worldwide. We are dedicated to serving our customers through this uncertain time.
"The Company continues to develop new data capture options for its customers, so together we can enable better solutions in emerging market segments. We launched two new DuraSled scanners for the XCover Pro and one medical-grade DuraScan scanner on Monday July 27th and Wednesday July 29th, respectively.
"Looking ahead, the uncertainty regarding the spread of the COVID-19 pandemic and the timing of the economic recovery could continue to materially impact our results of operations and cash flows. Nonetheless, we will remain proactive in our efforts to minimize the negative impact of COVID-19 on our business. Our online business model, which was created a few years ago, enables us to cope with today's new operating environment. We will continue improving our service to our customer," Mills concluded.
About Socket Mobile, Inc.
Socket is a registered trademark of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective owners.
© 2020, Socket Mobile, Inc. All rights reserved.
-- Financial tables to follow --
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SOURCE Socket Mobile, Inc.
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