Socket Mobile (SCKT) Reports Q2 Loss of $0.13, Revenues Miss

Socket Mobile (NASDAQ: SCKT) reported Q2 EPS of ($0.13), versus $0.00 reported last year. Revenue for the quarter came in at $2.7 million versus the consensus estimate of $4.19 million.

"As anticipated, following the effects of the COVID-19 pandemic on our revenues in the first quarter of 2020, we experienced significant revenue declines in the second quarter. We expect our business to be adversely impacted by COVID-19 for the foreseeable future. In Q2, we received $1.06M in PPP loan, most of which is likely to be forgiven, and implemented cost reduction measures, enabling us to preserve cash. The Company will continue taking actions in Q3 in response to market conditions and operational disruptions," said Kevin Mills, president and chief executive officer.

"It should be noted that our first and foremost concern remains the health and safety of our employees. Accordingly, we have implemented appropriate policies and procedures to ensure that our operation is in as safe a manner as possible. We are maintaining a remote work program for all functions other than manufacturing that cannot be completed remotely. The Company has continued all business operations and is manufacturing and delivering products to our customers worldwide. We are dedicated to serving our customers through this uncertain time.

"The Company continues to develop new data capture options for its customers, so together we can enable better solutions in emerging market segments. We launched two new DuraSled scanners for the XCover Pro and one medical-grade DuraScan scanner on Monday July 27th and Wednesday July 29th, respectively.

"Looking ahead, the uncertainty regarding the spread of the COVID-19 pandemic and the timing of the economic recovery could continue to materially impact our results of operations and cash flows. Nonetheless, we will remain proactive in our efforts to minimize the negative impact of COVID-19 on our business. Our online business model, which was created a few years ago, enables us to cope with today's new operating environment. We will continue improving our service to our customer," Mills concluded.

For earnings history and earnings-related data on Socket Mobile (SCKT) click here.

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