Socket Mobile Reports Q4 Revenue Up 26% Sequentially And Year-Over-Year
Socket Communications, Inc, dba Socket Mobile, Inc., an innovative provider of mobile productivity products, recently reported financial results for the 2007 fourth quarter and year ended December 31, 2007.
Revenue for the fourth quarter of 2007 was $6.8M, a 26% increase over revenue of $5.4M in both the fourth quarter of 2006 and in the third quarter of 2007. Net loss applicable to common stockholders for the fourth quarter was $431,000, or a loss of $0.01 per share, compared to a net loss applicable to common stockholders of $1.3M, or a loss of $0.04 per share, in the fourth quarter of 2006 and a net loss of $898,000, or a loss of $0.03 per share, in the previous sequential quarter. The portion of the net loss attributable to stock option expensing in the fourth quarter was $231,000, or $0.01 per share, compared to $281,000, or $0.01 per share, in the fourth quarter of 2006 and $258,000, or $0.01 per share, in the previous sequential quarter.
Kevin Mills, president and chief executive officer, commented, "2007 was a year of change for Socket as we successfully transitioned from being a peripherals supplier to a systems supplier for the business mobility market. We outlined a new strategic direction at the beginning of 2007 around the introduction of our own handheld mobile computing device, the SoMo 650, designed expressly for business applications. In the fourth quarter, we recognized SoMo revenue of $826,000, an increase of 84% over the previous quarter. Overall customer response to the SoMo has been excellent and many have completed their evaluations and are now in the early stages of deployment. At the same time, we achieved sequential and year-over-year growth in our data collection and OEM products. We were pleased to finish the year having made this transition and having achieved near record revenue in the fourth quarter.
"As we enter 2008, we are focused on establishing the SoMo and our systems solutions in the mobile workforce market. Thus far, we are seeing excellent opportunities across all our traditional vertical markets, including health care, retail merchandising, hospitality and automotive. We are also seeing growth in Europe and will soon introduce multiple language support for the SoMo that will expand our available market and help accelerate sales. Looking ahead, we expect the pace of SoMo sales growth to build as more deployments roll out. We also plan to strategically invest in additional sales personnel and marketing programs to expand our market outreach and to support continued growth," Mr. Mills concluded.
Revenue for the 2007 full year totaled $24.1M, compared to $25.0M for 2006. Net loss applicable to common stockholders for 2007 was $3.3M, or a loss of $0.10 per share, compared to a net loss applicable to common stockholders of $2.9M, or a loss of $0.09 per share, for 2006. The portion of the net loss attributable to stock option expensing in 2007 was $1,023,000, or $0.03 per share, compared to $1,215,000, or $0.04 per share, in 2006. Cash and cash equivalents were approximately $5.0M at December 31, 2007, compared to $6.1M at December 31, 2006 and $4.4M at September 30, 2007.
Conference Call
Management of Socket will hold a conference call and web cast today at 8:30 A.M. PST (11:30 A.M. Eastern) to discuss the quarterly results and outlook for the future. The dial-in number to access the call is (877) 407-8033 from within the U.S. or (201) 689-8033 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. Access code for the replay is 286# followed by conference ID 270843#. The call will also be carried live and available via replay through a link on Socket's website at www.socketmobile.com
About Socket Mobile
Socket Mobile makes mobility computing and productivity work. The company is a one-stop supplier of mobile computing hardware systems, offering a handheld mobile computer specifically designed for business mobility use and an extensive portfolio of essential mobile data collection and networking peripherals that enable mobile automation and productivity increases. The company also offers OEM solutions. Socket is headquartered in Newark, Calif. and can be reached at 510-933-3000 or www.socketmobile.com
SOURCE: Socket Communications, Inc.