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 months ended March 31, 2022.
First Quarter 2022 Financial Highlights:
- Revenue increased 31% to $6.3 million, compared to $4.8 million in the comparable prior-year quarter, and increased by 3% sequentially compared to $6.1 million in Q4 2021.
- Gross margin decreased to 49.7% compared with 53.5% for the prior-year quarter and 52.1% in the preceding quarter. Rising component costs and freight costs contributed to the lower Q1 2022 margin.
- Operating income was $0.5 million compared to an operating income of $0.2 million for the prior-year quarter, and $0.7 million in the preceding quarter.
- Diluted earnings per share was $0.04 compared to $0.03 for the prior-year quarter, and $0.11 in the preceding quarter.
“I am proud of the strong performance delivered by our team through the first quarter of 2022,” said Kevin Mills, President and Chief Executive Officer of Socket Mobile, Inc. “We remain focused on strengthening and expanding our software development tools for our application partners, particularly CaptureSDK. We recently announced our CaptureSDK for Flutter, to support the many developers who are using the Flutter development environment. According to the latest figures, Flutter is used by over two million developers, with 500,000 using it monthly. 42% of software developers have used Flutter, and it has quickly become the popular cross-platform mobile framework amongst developers, according to a 2021 developer survey. In Q1, we also announced our SocketCam product, C820, a software-based barcode scanner, which offers a free, flexible, quick, and reliable data capture solution to our application partners who can include the C820 in their applications to provide free scanning to their end-users. The SocketCam C820 is the first member of the SocketCam family and turns any mobile device into a high-performance barcode scanner. Application developers today are challenged to service a wide range of customers with various data capture requirements, from the price-sensitive to the performance-sensitive, and even multiple data types. The addition of the C820 seamlessly enables these diverse requirements. End-users whose data capture requirements exceed the capabilities of the free camera-based scanners will have the choice of purchasing a Socket Scanner or using an advanced version of the camera-based scanner which is scheduled to be available in the second half of the year.
“We have been able to support all our customers thanks to our Operations team which continues to manage the challenges associated with supply chain disruptions, higher component costs, and shipping. The additional costs in Q1 impacted our margins. In Q2, we expect to recover some of our margin loss by reducing some of the discounts we currently provide and increasing the volume of sales in our lowest discount channels.
“We have seen that data capture requirements evolve over time, and we have adjusted our strategy and capabilities to better service these requirements by providing our partners with solutions that enable them to deal with both different technologies such as barcode and NFC, and to support their most price-sensitive and most performance-sensitive customers with a single development cycle. We look forward to continuing to work and deliver solutions that help our application partners grow their businesses,” continued Mills.
“I look forward to discussing our first quarter financial results and outlook on our upcoming earnings call and webcast,” concluded Mills.
