Socket Mobile reports Q3 EPS (15c) vs. (15c) last year

Reports Q3 revenue $3.1M vs. $3.9M last year. “Although Q3 has traditionally been a slower quarter for us, our sales-out to end users held steady compared to Q2, which is encouraging given current market conditions,” said CEO Kevin Mills. “Our revenue is driven by gross shipments to distributors. Slower distributor bookings and reduced channel inventory contributed to the lower reported revenue for the quarter. In addition, several deployment deals were delayed, reflecting customers’ cautious spending and continued focus on cash preservation. While headwinds persist, our steady sales-out from distributors and lower channel inventory levels suggest that our distributors will soon need to replenish inventory to maintain the current run rates. In response to the softer business environment, management implemented cost-saving measures that resulted in a 13% reduction in operating expenses compared to Q3 last year and a 6% decrease from the prior quarter. We will continue to monitor expenses and cash outflows carefully to navigate this challenging period. Our XtremeScan products have continued to attract interest, although the sales cycle is long. We remain committed to investing in both new and existing products for the industrial market, with the goal of driving long term revenue.”