Tue, Mar 25, 4:39 PM (32 days ago)
**Socket Mobile, Inc. (SCKT) - 2024 Annual Report Summary** **Financial Performance:** - **Revenue:** $18.8 million (2024), up 10% from $17.0 million (2023). - **Gross Margin:** 50.4% (2024), up from 49.7% (2023). - **Net Income:** -$2.24 million (2024), compared to -$1.92 million (2023). - **Earnings per Share (EPS):** -$0.30 (2024), compared to -$0.27 (2023). **Operating Expenses:** - **Research & Development:** $4.7 million (2024), down 2% from $4.8 million (2023). - **Sales & Marketing:** $4.4 million (2024), up 10% from $4.0 million (2023). - **General & Administrative:** $2.8 million (2024), up 2% from $2.7 million (2023). **Strategic Overview:** - **Product Focus:** Cordless data capture devices, RFID/NFC technologies, camera-based barcode scanning software. - **Market Position:** Serves retail POS, commercial services, asset tracking, manufacturing, logistics, healthcare, and education. - **Distribution:** Two-tier distribution network, including major distributors like Ingram Micro, ScanSource, and Blue Star. **Future Outlook:** - **Growth Potential:** Strong growth in the Bring Your Own Device (BYOD) market. - **Product Innovation:** Continued investment in R&D to maintain competitive edge. - **Market Expansion:** Focus on serving app providers and expanding distribution channels. **Risk Factors:** - **Financial Risks:** Dependence on app providers, global economic conditions, and foreign currency fluctuations. - **Operational Risks:** Supply chain disruptions, technological obsolescence, and competition. - **Regulatory Risks:** Compliance with industry standards and intellectual property protection. **Financial Condition:** - **Cash Flow:** Negative cash flow from operations ($521,485) in 2024, compared to positive cash flow ($48,562) in 2023. - **Debt:** $2.5 million revolving credit facility, with no outstanding balances as of December 31, 2024. - **Liquidity:** Adequate cash and capital resources to meet anticipated requirements. **Market Position Changes:** - **Customer Concentration:** Top customers include BlueStar, Ingram Micro, and ScanSource. - **Supplier Dependence:** Reliance on a limited number of suppliers for critical components. **Other Highlights:** - **Employee Count:** 59 employees as of December 31, 2024. - **Stock Performance:** Volatile trading with a range of $0.91 to $1.72 in 2024. - **Stockholders' Equity:** $18.2 million (2024), down from $19.4 million (2023). **Note:** This summary provides a concise overview of Socket Mobile, Inc.'s financial performance, strategic initiatives, risk factors, and market position. For detailed information, refer to the full 2024 Annual Report.