Socket Mobile (SCKT) 24 Oct 242024 Q3 Earnings call transcript

Welcome to the Socket Mobile Inc. Q3 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 collection 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 manufacturer 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 forward-looking not does obligation such to statements. Socket

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

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

XXXX. QX of was million, loss million to to for QX compared $X operating a $X.X loss operating in increase Our We XX% $X.X of an QX by In $XXX,XXX. Overall, quarter. in we bookings compared much September. revenue an QX XXXX. QX, million had very million in experienced was were in difficult EBITDA very bookings negative followed by and stronger approximately a July, weak QX August We $X.X

we lower products updated with distribution feedback and evaluated have $X.X very and iOS bookings we Dave a in a details QX. We in number industrial and backlog the color in forward by are pleased Capture of they delivered large with who uneven our resulted which resulted million from reported also entering that our with were for projects. organizations met been experience their more some potential provide revenue and an completed few and on minutes. In will also a full of QX, support version SDK solid moving XX. expectations, Our

of Capture so SDK our version we support Native React developers. our these fully completed important also We can

field as slowly moving deliver from the projects to million industrial the working anticipated, trials move have customers to more insiders they these are originally we from we larger to in ensure As $X than QX, to deployment. raised capital

Dave progress. the will turn to and more who like Holmes, Dave? updates provide on now call over detail would to our I

afternoon, good and Kevin, you, Thank everyone.

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

data capture more company. Socket are investments Mobile helping innovation into transform in comprehensive a Our

are These market, XtremeScan, for our military-grade rugged and We scanners. barcode with scanning the environments. seeing facilitating of in industrial built iPhones were work industrial applications products use traction good the iOS

the introduced XGXXX, for member family, XtremeScan market. the also a designed and transportation We logistics new specifically to the

built can used your or design with opening bring Android any device, for be to and well BYOD market up for device. phones It iPads tablets. was as mobile own unique and Our larger iPhones as XtremeScan the

because delivery use can our to think scanning. and industrial XtremeScan in use to carry energy mobile to they drivers barcode very milestone in for independent navigation, own the evaluating withstand phones data harsh high-performance no to XtremeScan durability. commitment airports. for and love capture have Workers by high-quality Delivery customers significant devices. XtremeScan delivering their it's It transportation, devices represents and then to We scanning solutions mobile drivers. has it with our capabilities device. ultimate multiple for offer designed robust warehousing, manufacturing, is longer a enable environments received often to the communication, operations, enable which first and medium-sized been perfect photos small connect companies the well

products passed ruggedized a We've Fortune We environments. these XX new QX, customers into through the testing. door In rigorous showcase some These opening of most this the customer testing continued getting airlines of with in putting to several which in are including most ultimate new customers customers, quarter, products opportunity segments excited is difficult flying the demand as at private the the dozens well. XtremeScan to computing about the intense these performance we're colors. massive space. marquee event computers'

to and workers. of end they before these in devices to this pilot contribute and deployments of XXXX. moving start our the into the projects of frontline their customers to to planned now revenue are Latter Some year, those hands into are will put begin proof-of-concept

We've also our technology. camera-based scanning in progress made promoting

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

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

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

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

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

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

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

million, sequentially In During million increased decrease from to in margin in compared XX% compared was $X.X to decreased in $X.X by gross quarter. quarter, quarter QX, $X.X compared preceding the year's QX, preceding of totaled our the by prior quarter year's revenue in our to but a X% million million compared XX% reflecting and to XX% the quarter. Operating year's a X% the expenses prior in for the and $X.X the prior XX% $X.X QX million to preceding XX% quarter. increase

net XXXX share per a of loss net $XXX,XXX loss and of the previous per in we share $X.XX $X.X QX, of to During $X.XX $X quarter. compared a $X.XX in million or net a per or loss million recorded or share QX

compared and negative the a in ] and previous including negative [ to Total is XXXX. depreciation, QX $XXX,XXX positive XXXX $XXX,XXX $X,XXX QX in expenses, EBITDA equity a $XXX,XXX in are QX noncash expenses quarter. amortization

capital note year of in prior rate of Our our market additional industrial a our the cash which financing expand market. wraps to million spending $X.X the was new the CapEx QX -- QX, prior and convertible the $X prepared in end In completed at to compared working million provides the at August, XXXX balance end remarks. $XXX,XXX. This million was million $X.X at the quarter. We of $X.X end

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

And Instructions] from Carroll. William first [Operator will our come question

Yes. to a to shareholder about at least years. now I've company a X for the even or does start When expect break been make profit? potentially

but camera expect I in think X make and XXXX. feel a that a invested yes, over last profit have we investments industrial 'XX to lot will off the and space the pay years, we these in in we And beyond. the

any remarks. to this further [Operator Instructions] there or at questions time. the you I'll Mills, additional And closing for it no turn are Mr. conference appears back

We everyone participating thank good Goodbye. just in wish to would operator. afternoon, you, like call. Thank and today's a you for

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