SOCKET MOBILE, INC. Q3 FY2024 earnings call

• Kevin mentioned Q3 revenue increase, operating loss, uneven bookings, positive feedback on industrial products, completion and delivery of updated CaptureSDK with iOS 18 support and React Native version, and raising $1 million from insiders for working capital. - Dave discussed progress with XtremeScan products, introduction of XG640 for transportation/logistics, SocketCam camera-based scanning technology progress with app partners integrating and potential recurring revenue from subscriptions, and how Xtreme products and SocketCam diversify the business. - Lynn detailed Q3 financial results including revenue change, gross margin, operating expenses, net loss, EBITDA, non-cash expenses, cash balance, and CapEx spending.

Q3 revenue was $3.9 million, a 21% increase compared to $3.2 million in Q3 2023. Operating loss was $1 million in Q3, compared to $1.4 million in Q3 2023. EBITDA was negative by approximately $500,000 in Q3. There was uneven bookings distribution leading to lower revenue and a $2.2 million backlog entering Q4. Gross margin in Q3 was 49%, operating expenses totaled $2.9 million, net loss was $1 million or $0.15 per share, cash balance at end of Q3 was $2.9 million, and CapEx spending was $400,000.

• Kevin stated the company expects to make a profit in 2025, citing investments in industrial and camera space will pay off in '25 and beyond.

• Risks include potential delays in product manufacture due to technological, market, or financial factors. - Risk of market acceptance and sales opportunities not happening as anticipated. - Risk that application partners and distribution channels may not distribute products or be successful. - Risk of acceptance of products in vertical application markets not happening as anticipated, as outlined in SEC filings.

Q: When does the company expect to at least start to breakeven or potentially make a profit?

A: Kevin Mills said the company expects to make a profit in 2025, noting investments in industrial and camera space will pay off in '25 and beyond.