Windows CE revisions bode well for Socket..
As CE goes, so goes Socket. An improved version will, IMO, simply increase the demand for connectivity products.
As far as addressing other Windows markets, Socket is the main player in serial cards and, according to the company, advertising efforts for serial cards are not that effective. Folks who need a serial card will likely buy Socket's.
I remain optimistic about the numbers for 2nd quarter. An expectation of $1.8-1.9 million is reasonable. This should translate to a penny or two loss per share. Perhaps more importantly (and if we hit these numbers), it represents a break-out quarter in terms of revenues.
Of course, Socket will have to follow up with a string of improving quarters from both a revenue and earnings standpoint. It seems that there are a number of reasons why this should happen:
First, Phone cards are being introduced in Canada over the next couple of weeks and in the U.S. and Europe later this summer. Early sales should contribute to revenues by the middle/end of 3rd quarter. Not huge numbers for third quarter, but significant. Look for this to ramp up big-time over the coming quarters. High expectations.
Second, the integrated scanner will begin shipping toward the middle/end of 3rd quarter. HP should help this along.
Third, Zebra related products should start shipping in the third quarter.
Fourth, Unisys check scanners will be shipping in the 3rd quarter. I inquired about this product at Unisys and received the following response: "Unfortunately, we do not disclose sales forecasts. The product's initial reception by the market indicates it will do well, however."
Fifth, much of Socket's revenue stream, perhaps half or about a million per quarter, is relatively steady.
Finally, we will eventually see some large orders (7 figures). Hopefully, this will happen in the third quarter. Whether it is for phone cards or integrated scanners doesn't really matter. It's easier to imagine sales of large numbers of phone cards. I think we'll have to see how it goes with Bell Mobility this summer but this seems to be emerging as a hot area. FYI, Socket's phone card was used in a Microsoft keynote presentation at DevCon.
I think we're in good shape.
Good luck.
RC
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