#United States #Fremont #Socket Mobile #XtremeScan #QR Code Reader

Socket Mobile Reports Fourth Quarter and Full Year 2024 Financial Results

Socket Mobile, Inc. (NASDAQ: SCKT), known for its innovative data capture solutions, has recently published its financial performance for the fourth quarter and the entire year ending December 31, 2024. This report reveals a notable upward trajectory in revenue and strategic product advancements that have enhanced the company’s position within the market.

Financial Highlights of Q4 2024

During the last quarter of 2024, Socket Mobile achieved a revenue of $4.8 million, marking a 10% increase compared to the same period in the previous year, where revenue was $4.4 million. Additionally, this figure saw a significant 25% rise from the $3.9 million reported in Q3 2024. The gross margin for Q4 settled at 51.0%, a slight drop from the 52.8% of the previous year but higher than the 49.0% recorded in Q3 2024.

Despite an operating loss of $411,000, there was an improvement from the $476,000 loss recorded a year earlier, as well as a decrease from the $1,031,000 loss in Q3. The diluted earnings per share stood at $0.00, a decline from the $0.08 of the prior year, yet a notable recovery from the net loss per share of ($0.15) in the previous quarter.

Annual Performance for 2024

For the full year of 2024, Socket Mobile reported total revenue of $18.8 million, which represents a 10.2% growth compared to the $17.0 million of 2023. The overall gross margin increased to 50.4%, up from 49.7% the previous year. The annual operating loss reported was $2.5 million, an improvement over the $3.1 million loss of 2023. Conversely, the net loss per share reflected as ($0.30), slightly larger than the ($0.27) reported in the previous year.

Strategic Developments and Product Innovations

Kevin Mills, the President and Chief Executive Officer of Socket Mobile, emphasized the key factors behind the company's financial performance. He noted substantial growth in the business catering to retail point-of-sale (POS) application providers. However, he acknowledged that adoption in warehousing and logistics sectors has been slower than expected. The company is actively identifying areas for improvement while working on strengthening its market position.

In 2024, Socket Mobile expanded its horizon by launching various new products. The XtremeScan product line saw the introduction of the XtremeScan Mag devices—XS630, XS640, XG630, and XG640, designed for the burgeoning workforce utilizing their phones for both personal and professional tasks. This model is particularly beneficial given the 'Bring Your Own Device' (BYOD) trend, representing a substantial growth opportunity.

Furthermore, Socket Mobile unveiled the S320, their inaugural countertop QR Code Payment Reader, offering a versatile solution for retail POS applications. This device not only facilitates QR Code payment processing but also accommodates age verification, ticket validation, and loyalty programs. The company also made enhancements to the CaptureSDK and updated its entire range of barcode scanners and NFC reader/writer products to ensure full compatibility with iOS 18.

To improve customer engagement, Socket Mobile launched a revamped website and an updated developer portal named Alfred, which is an AI-powered resource providing developers with 24/7 multilingual support. The upgraded platform features easier navigation and access to extensive resources regarding their array of solutions.

Looking Ahead

As Socket Mobile gears up for the future, the company continues to prioritize innovation, aiming to broaden its product offerings and fortify its competitive edge in the market. By enhancing both technology and customer support, they are setting a strong foundation for sustained growth. Mills expressed gratitude towards the customers and partners for their support as the company progresses.

Conference Call

Socket Mobile's management will hold a conference call for further discussion of its quarterly results and future outlook today at 2 PM Pacific Time (5 PM Eastern). Interested parties can access this call by dialing (800) 237-1091 for U.S. toll-free access or (848) 488-9280 for toll access.

About Socket Mobile, Inc.

Headquartered in Fremont, California, Socket Mobile specializes in providing data capture and delivery solutions aimed at enhancing productivity in the workforce. Its revenue primarily derives from third-party mobile applications that integrate its solutions into various sectors, including retail, field service, and manufacturing. The company has amassed a vast network of developers leveraging its tools to incorporate sophisticated data capture functionalities into mobile applications. For more information, visit Socket Mobile's website.