SCKT - Earnings call transcript Q1 2021

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Operator

Welcome to the Q1, 2021 Management Conference Call. Management is on the call from Socket Mobile. Kevin Mills, President and CEO, along with Lynn Zhao, CFO. My name is Adrianne, and I will be your operator for today's call.

Before we begin, I'd like to remind everyone that this conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities and Exchange Act of 1934 as amended. acceptance but and limited including and mobile timing, products. and include, mobile statements details market statements statements Socket distribution collection and Mobile in data data market in conditions forward-looking and are trends, the to, not regarding on predicting opportunities Such the products markets sales which of collection its products, sells Socket of materially market or financial a uncertainties predicted of from factors, may and acceptance risks capital, of components risk rolled statements or due and and forward-looking availability actual statements could the out working the such of include product but because sales results the opportunities including, products as differ number anticipated be delayed including and factors, market that to to, risk not in Such technological, necessary not results limited manufacture the markets to and may application channels the may may risk that doing in acceptance and not not Socket's Socket risk and not vertical the anticipated, the application reports so, XX-K that recent in happen the well of current Socket's distribution and be risks may products most Form as happen successful distribute as with partners products as XX-Q filed Exchange as and choose Commission. not or other Securities anticipated, that described

you over we Mills, listen-only Please being Later, turn such and At Instructions] call to this statements. conference mode. is update conduct time, session. forward-looking begin. Kevin not are President will does recorded. any Socket participants in any Kevin now this CEO. obligation a to undertake a the may note all I [Operator will question-and-answer

Kevin Mills

And afternoon, for thank Good joining us operator. today. you you, everyone. Thank

quarter XXXX. was revenue to XX% $XX,XXX, QX, share quarter diluted XXXX customers Shopify or of Lynn loss quarter diluted million compared our $X.X fully share, a in of In revenue more centric the first by was a in income and Net Zhao will over driven quarter the results fully a of of net first our detailed $X.X breakdown for was first by provide or $XXX,XXX, Square. per up minutes. our the first per $X.XX $X.XX led retail of Our few of XXXX. in a million, loss

seeing greater to interest mobile associates. customers Field These making centric retail are the solution COVID operations, post who would restrictions as in avoid deliver Services. business much customers different business also is other customer from also driven especially are reopening based centric the and These more Our one demand allow a that also activities, new mobile solutions related economy bit and well requirements commercial services services interactive of more on shopping in eased. iPad benefiting to from retail. inspection system for outdoor are check out share in customer via and an pandemic. our We're indoor seeing the application bode model. attractive. assistance supporting in We're like and a queuing interested good Customers our sales I requirements hospitality one solutions type

the The XXXX. segment increase commercial this services we strongly our strong grow to business year. expect potentially during QX We in of continue and continue saw should demand to

do But ensure commitments have or have sufficient impact daily challenge. components confident very challenge. world times two from deliver during also supply real Currently, not have to year. a it's we and chain QX remains QX are we supply Ensuring we ability there lead may going point times supply weeks need issues these working solid lead QX. of months four to to parts be the must to I some out having ballooned a we However, issues issues our with are the in And a impact the overnight. hard today. Component

in in there to will believe products. provide supply the contactless technology to need license world SAS, the In field. demand a why deliver transfer our SXXX perpetual writer core DXXX situation and we to for market contactless continue aggressively SocketScan agreement products. with we QX, into post royalty-free as DuraScan leader the acquired COVID the reader entered technology SpringCard reopens contactless updates will a a strong moved be we We which technology a quarterly on to we We the our also is readers calls. the these secure Under on deal,

many I've writes doesn't nobody software exist. said for hardware times, As that

applications. to need their we hardware they the provide our to can develop So customers so

it and the COVID where and mobile these both mobile XXXXs months, contactless is providing and due these are in few readers happen, about on trials application. exceptionally for the scanners in loyalty your the market and tools, to Our completing Based releases; considerably several centric There used Health was In are passes the COVID SXXX tools to reader our focus passport, contactless which ideal SXXX is effectiveness. potential contactless Today, COVID this adopted, trials, grown we development opportunity controlling our developer bubble very COVID. and requirement has its passport focus market to Should information likely is read capabilities on our well. of initial our was confident if wallets worked the new status the up end which your reading phone. to partners. support field passing past contactless the a

and readers solutions. scanners can integrated their our be into contactless So

restaurants certified. nightclubs status become passports businesses from Apple a Google many entry. theatres, is COVID your determine The before reality, need fully to COVID to SXXX already and Wallet will Assuming and

directly passes cards. contactless as So it can traditional phone, mobile well from from your as read

demand world reopens. our QX good. strong expect to And we products see in for as summary, was the So

working supply hard to customers revenue. and our have ensure everyone are our else issues issues impact like don't these We associated and

the Lynn contactless be over opportunity. are We turn and Lynn? in to significant call to I are more our hard much said now like reader CFO, opportunity With player the this significant on seeing working a a to horizon emerging that Zhao.

Lynn Zhao

Kevin. you, Thank

products growth, growth. quarter our revenue out drive solid the and which could a investing to we a actively with products manage to new costs continued profitable addition existing in operating expenses while and improving In delivering

gross Our the from XX.X%, XXXX. quarter first was profit of increased X.X% margin

expense is compared QX Our XX% is of But expense QX XX% XXXX. revenue $X.X level lower their to million same year ratio ago. as at a to to operating the

Our liquidity has been further on strengthened XX. March

funding exercise Our million, million cash intangible for $X.X and balance technology on the $X million is asset increase XX, on employee options compared Their to loan. statements. financial profitable SpringCard was attributed The of stock operations, of as the acquisition XX the XXXX. non-formula an to $X.X the of December reported is the March

that maturity agreed on as conducted determined review QX, credit and to valuation. XXXX. we and In our the our valuation the have with company they of their January the date facilities auditors extended bank the Our renewed

the $X facility of line loan. new million the non-formula increased and agreement, $X credit to was revolving credit With that a $X domestic million million includes

$X.X of remains facility credit XM Our million place. in

Shareholder will prior will The our to a link, be tallied on and hold obtain the To please XX meeting results in We May the send Thursday AM. virtual Annual be collected meeting socketmobile.com. to meeting. The proxymaterials@ will an requests format. Meeting voting meeting at XX:XX email

will to report also The the results will meeting. file X-K after a We results our be website. Form posted on the

for the call over turn to Operator? Now I the questions. your operator will

Operator

Instructions] [Operator

Operator

press no no star questions. one. queue, have you'd we but like we And Currently, to if questions have enter please the

Kevin Mills

operator. Thank you, you. Okay, thank

So I I'd afternoon. you the to the Good employees call. participating you I and also like again. continued commitment take for good just thank thank afternoon. like everyone for opportunity wish our in to Thank their And support.

Operator

conference call. concludes today's Thank and you, Thank This gentlemen. ladies for participating. you

may You disconnect. now

Socket Mobile (SCKT) 23 Apr 212021 Q1 Earnings call transcript