Thu, May 8, 4:47 PM (14 days ago)
**Socket Mobile, Inc. (SCKT) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $3,965,920 (down 20% YoY from $4,977,797). - **Gross Profit Margin:** 50.4% (slightly up from 50.3% YoY). - **Operating Loss:** $893,673 (increased from $485,175 YoY). - **Net Loss:** $994,140 (up from $557,415 YoY). - **EPS:** -$0.13 (wider than -$0.07 YoY). **Cash Flow:** - **Operating Cash Flow:** -$732,970 (down from -$94,890 YoY). - **Investing Activities:** -$52,304 (down from $16,358 YoY). - **Financing Activities:** $0 (down from $23,750 YoY). **Key Metrics and Trends:** - **Revenue Decline:** Attributed to weaker demand in domestic and international markets. - **Gross Margin Stability:** Maintained despite lower revenue, indicating effective cost control. - **Operating Expenses:** Research and development expenses decreased by 6% YoY, while sales and marketing expenses increased by 7% YoY. - **Interest Expense:** Increased to $100,467 from $72,240 YoY due to higher interest on convertible notes. - **Cash Position:** Ended the quarter with $1,706,690 in cash and cash equivalents, down from $2,491,964 YoY. **Future Operations and Uncertainties:** - **Market Risks:** Volatility in global economy, supply chain disruptions, and geopolitical tensions. - **Operational Risks:** Dependence on key customers and distributors, potential delays in product introductions, and competitive pressures. - **Financial Risks:** Need for additional capital, compliance with bank covenants, and potential fluctuations in quarterly results. **Management Discussion:** - **Outlook:** Confident in long-term growth but acknowledges short-term fluctuations due to market demand. - **Strategic Focus:** Continued investment in R&D, expansion of distribution channels, and maintaining operational efficiency. - **Risk Mitigation:** Exploring supply chain adjustments and alternative sourcing strategies to mitigate tariff impacts and supply disruptions. **Conclusion:** Socket Mobile, Inc. faced a challenging Q1 2025 with significant revenue declines and increased operating losses. However, the company maintained stable gross margins and is focused on strategic initiatives to drive future growth. The outlook remains cautious due to market uncertainties and operational risks.