SCKT - Earnings call transcript Q2 2024

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Operator

Welcome to the Socket Mobile, Inc. Q2 2024 Earnings Call. My name is Jen, 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. Such forward-looking statements include, but are not limited to, statements regarding mobile data collections and mobile data collection products, including details on timing, distribution and market acceptance of products and statements predicting the trends, sales and market conditions and opportunities in the markets in which Socket Mobile sells its products. Such statements involve risks and uncertainties, and actual results could differ materially from the results anticipated in such forward-looking statements because of a number of factors including, but not limited to, the risk that manufacture of Socket's products may be delayed or not rolled out as predicted due to technological, market or financial factors, including the availability of product components and necessary working capital; the risk that market acceptance and sales opportunities may not happen as anticipated; the risk that Socket's application partners and current distribution channels may choose not to distribute the products or may not be successful in doing so; the risk that acceptance of Socket's products in vertical application markets may not happen as anticipated; as well as other risks described in Socket's most recent Form 10-K and 10-Q reports filed with the Securities and Exchange Commission.

any update undertake statements. such not does obligation any to forward-looking Socket

Zhao, I the are over begin. Chief Dave Lynn today with to Business Financial Mills, and On Mills, me Officer; Kevin Kevin Mills. call you the now will turn Chief Kevin Executive Officer; Chief call Officer. may Holmes,

Kevin Mills

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

newer were XXXX, from Dave over and In our would made. our million, while Our more X.X% our detailed decrease challenging we million late our was now QX to focus quarter $X.XX update have the XXXX. positive. [Audio QX been $X.X a to a performance we positive. Overall, to operational We products and a call QX revenue will has deliveries we a turn was Gap] in on newer our maintained early to QX to Dave? been XXXX. [Audio very provide in with progress. make revenue. I on a QX difficult our EBITDA Holmes like Feedback XXXX, who and compared Gap] customer promoting launched as XXXX during were quarter initial contribution in meaningful products. the pleased climate, economic demonstrating

David Holmes

Thank you, good everyone. Kevin, and afternoon,

the I'd of Kevin significant newer are making milestones products about we As with today like few the that said, in our highlight and and talk to progress QX. a we strategic achieved initiatives

iOS to facilitating recently work the the market, specifically the products military-grade into announced scanners and designed were Socket These industrial and our helping traction barcode are for Mobile the rugged Our comprehensive use addition our XtremeScan markets. transform scanning environments. We innovation logistics seeing of more as transportation XGXXX, wearable as company. for industrial investments family, latest good data in a with built our in well products. the capture applications We're iPhones

navigation pilot designed computing in and performance door durability. to the rigorous and enable QX, it's for flying products space or built workers. to to with putting independent customers saw barcode proof-of-concept scanning ruggedized their design most to connect several through ultimate colors. the are mobile offer photos bring medium-sized communication, XtremeScan most for of capabilities now We commitment they and put to difficult your projects use the industrial solutions our hands demand customers their the delivery drivers. use conditions devices the testing. massive that and high-quality the moving warehousing, our product can enable carry significant in to BYOD often own perfect manufacturing, device. think which device customers love to small Delivery longer these Opens segments marquee in it we capture into unique operations, environments. In is the into intense drivers for instantly or Many families passed some was high-performance customer new iPhones delivering XtremeScan Our energy these own new no represent scanning. multiple withstand milestone of with the of for transportation, testing ultimate harsh data and industrial, have Workers We robust a into devices. These because frontline in airports.

in promoting these our deployments our in We scanning progress expect into to year, we this significant begin QX made move to products expect to also contribute later to and XXXX. We've revenue camera-based into technology. and

to feature-rich the capture subscription-based requirements of scanners. handheld access diverse SocketCam can our SocketCam to end apps a all app SocketCam the free users needs user free SocketCam their partners subscription directly integrated into scan have their using into camera. platforms, our partners app adopter And customers intense our version enable barcodes array cost CXXX. most serve CXXX, to conscious still from hardware with most mobile The device the their their enabling of early our Our with more

All of simple app made integration free our available CaptureSDK. with single, these our partners' ecosystem and are of a to

this recurring SocketCam and to builds will generate upgrade a users revenue adoption each stream end As CXXX, month. for us

Our base allow market. the mobile enter diversify to customer new and will our large ruggedized extend our us reach XtremeScan and computing products

have on the us revenue opens door make SocketCam stream initiatives these become subscriptions. to diversified, for -- Socket for sustainable, more software Mobile month will a most to recurring Ultimately, allow each to a dependent retail.

our turn evolving hardware Lynn? into complete company. With over I'll more a capture details more that, Lynn it We and on data software financial for to are results.

Lynn Zhao

Dave. everyone, for you, joining Thank today's call. Thanks, Okay.

Our the $X.X QX year the revenue quarter. similar million, to approximately previous was prior quarter and

from XX% million to $XXX,XXX QX. reserve XX. level however, million, resulting XX.X%, for at inventory $X.XX $X.X was The in returns, on revenue during rate March channel an of increased from Our decreased increase

gross and year the our totaled in of increase margin salary the XX of preceding points in is maintained quarter. Operating attributed $X.X X% gross QX, over In cost compared compared points, XX XX.X% to start million, rise the This quarter. implemented a same year's yes. to of have to -- living a XX.X% for previous We QX. prior margin XX.X% adjustments was period over quarter primarily the X% the last QX our and expenses at increase

$XXX,XXX $X.XX During a per XXXX $XXX,XXX breakeven and QX of in QX are a per ] loss $XXX,XXX, to share share was per of XXXX. amortization net recorded or non-cash expenses depreciation, of EBITDA equity compared $X.XX loss we compared $XXX,XXX, to net QX, at Similar $X.XX QX loss XXXX. Total $X,XXX a in including in in share, $XXX,XXX, QX to [ or or QX and QX, XXXX. expenses,

activities the We reduced million at QX both from includes $X.X in cash Our prepared up at $XXX,XXX in spending remarks. $X.X in of million expenditures. the QX end XXXX $X.X capital at and $X.X our million. This inventory our both decreased balance QX. of operating $XXX,XXX to of from XXXX and to wraps the and end the end QX million

the the for operator to will I hand Now call questions. over

Operator

conference back Instructions] to you. the no turn there time. are [Operator And appears I'll at Mr. this it questions Mills,

Kevin Mills

a joining Goodbye. and and you Thank you, you, everyone, all afternoon. operator, for thank wish good us today

Operator

call. conference today's attending. for concludes this you Thank And

Socket Mobile (SCKT) 31 Jul 242024 Q2 Earnings call transcript