SCKT reports great results!
Socket Communications, Inc. Reports Record Second Quarter Operating Results
Record Revenues and Results Attributed to New Products and To Growing Windows CE Market
NEWARK, Calif., July 28 /PRNewswire/ -- Socket Communications, Inc. (OTC Bulletin Board: SCKT, SCKTW; PCX: SOK) today reported record revenue for the quarter ended June 30, 1999 of $1,802,298, an increase of 21% compared to revenue of $1,486,262 for the same period a year ago. Net loss applicable to common shareholders for the quarter was $110,327 ($0.01 per share) compared to a net loss applicable to common shareholders of $204,030 ($0.03 per share) for the second quarter of 1998.
Revenue for the six months ended June 30, 1999 was $3,262,905, an increase of 23% compared to revenue of $2,661,932 for the same period a year ago. Net loss applicable to common shareholders for the six months ended June 30, 1999 was $567,164 ($0.07 per share), compared to a net loss applicable to common shareholders of $883,438 ($0.13 per share) for the same period in 1998.
The Company attributed its revenue growth in 1999 to its newer products designed for the Windows CE handheld computing marketplace, particularly its bar code scanning and low power Ethernet cards, and to higher demand generated by increasing sales of Windows CE handheld computers. The Company experienced higher sales volumes across all of its product lines including its data communications, network connection, and barcode scanning products.
Operating results for the quarter and six months ended June 30, 1999 compared to the same periods in 1998 were similar. The lower net loss for the second quarter and six months ended June 30, 1999 reflected higher contribution from increased revenues in 1999, partially offset by moderately increased operating expenses. Gross margins for the quarter were 61% in 1999 compared to 62% in 1998 and were 60% for the six month period in 1999 compared to 59% in 1998. Net loss (before dividends and accretion of preferred stock) was $35,184 and $408,161 for the three and six months periods ended June 30 1999 compared to $136,635 and $551,249 for the same periods one year ago. The net loss for the six months ended June 30, 1998 includes an accretion charge in the first quarter of 1998 of $250,000 related to an equity financing issued at a discount to market.
''Socket's record second quarter operating results reflect Socket's success in delivering quality low power connection solutions into the growing Windows CE marketplace,'' said Socket's Chairman and Chief Executive Officer Charlie Bass. ''We expect to continue to grow with the Windows CE market and are focused on achieving near-term profitability. This growth will be helped by an expanding product family which complements the array of applications being served by Windows CE. This family now includes an integrated laser scanner card developed in cooperation with Symbol Technologies which turns a Palm-size PC into a completely portable laser scanner. We are also excited about our recently announced strategic relationships with Zebra Technologies to bring Windows CE connection solutions to barcode printing and with Unisys, which selected our low-power Ethernet card for a new Windows CE check reader. These products are scheduled for release in the third quarter and we expect to see volume shipments beginning in the fourth quarter.''
''We also announced in June with Microsoft a digital telephone connection kit to connect digital cellular telephones to Windows CE handheld computers to enable connections to the Internet and corporate e-mail systems while remaining completely mobile. The kit will include browser and installation software from Microsoft and be available this fall for both the North American CDMA and European GSM markets,'' Bass said.
|
