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Socket Mobile Reports Profitable Second Quarter and Six-Month Results

NEWARK, Calif., July 25, 2019 /PRNewswire/ -- Socket Mobile, Inc. (NASDAQ: SCKT), a leading innovator of data capture and delivery solutions for enhanced productivity, today reported profitable operating results for the second quarter and six-month periods ended June 30, 2019.

Revenue for the second quarter of 2019 was $5.1 million, an increase of 21 percent over revenue of $4.2 million for the same quarter a year ago and an increase of 9 percent sequentially from revenue of $4.6 million in the immediately preceding quarter. Net income for the second quarter of 2019 was $120,000, compared to net loss of $140,000 in the second quarter of 2018, and net income of $12,000 in the immediately preceding quarter. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), a non-GAAP measure of operating results, was $470,000 in the second quarter of 2019, compared to $80,000 in the second quarter of 2018 and $270,000 in the immediately preceding quarter.

Revenue for the six months ended June 30, 2019 was $9.7 million, an increase of 19 percent from revenue of $8.2 million in the same period a year ago.  Net income for the six months ended June 30, 2019 was $130,000, compared to net loss of $360,000 for the same period a year ago. Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) for the six months ended June 30, 2019 was $740,000, compared to zero EBITDA for the same period a year ago.

Gross margins on revenue for both three- and six-month periods ended June 30, 2019 were 52 percent, compared to gross margins on revenue of 51 percent for the corresponding periods in 2018.

Operating expenses for the second quarter of 2019 were $2.4 million, an increase of 6 percent compared to operating expenses of $2.3 million for the same quarter a year ago, and an increase of 3 percent sequentially from the immediately preceding quarter. Operating expenses for the six months ended June 30, 2019 were $4.8 million, an increase of 3 percent compared to operating expenses of $4.6 million for the same period a year ago.

Kevin Mills, president and chief executive officer, commented, "We are pleased with our second quarter and underlying positive growth trends of the business in general. Mobile point of sale (mPOS) applications continue to be our primary growth driver, but we are also experiencing growth in areas outside of mPOS, including commercial services and healthcare. We continue to invest in our product portfolio, so we can provide more complete and compelling solutions to our developer partners. Our developer community and the number of applications that drive our business continue to grow and we remain committed to our application driven business model. Our products are readily available through online reseller distribution channels, such as Amazon, almost anywhere in the world.  

"We look forward to Q3, which typically benefits from POS deployments, especially in the second half of the quarter. Our revolving credit facilities and profitability are providing the working capital we need to support future growth," Mills concluded.