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Socket Mobile(SCKT) - 2025 Q2 - Earnings Call Transcript
2025-07-31 22:00
Financial Data and Key Metrics Changes - Revenue for Q2 was $4 million, a decrease of 20% compared to Q2 2024, reflecting continued softness in customer demand [3][12] - Gross margin for Q2 was 50%, down slightly from 51% in Q2 2024, but consistent with Q1 2025 [12] - Operating loss was $700,000 for Q2, compared to a loss of $500,000 in Q2 2024 and a loss of $900,000 in Q1 2025 [3][13] - Adjusted EBITDA for Q2 was a loss of $100,000, compared to positive EBITDA of $8,000 in Q2 last year and a loss of $480,000 in Q1 [14] - Cash balance as of June 30 was $2.6 million, supported by $1.5 million in convertible note financing [14] Business Line Data and Key Metrics Changes - The company experienced weakness in both domestic and international businesses, leading to lower-than-expected revenue [4] - The deployment of the ExtremeScan products to a large industrial customer was successful, although a significant portion of the deployment has been delayed to 2026 [4][5] Market Data and Key Metrics Changes - Interest in the ruggedized scanning market is growing, with purchase orders received from multiple Fortune 50 companies [8] - The company is diversifying its business beyond retail into industrial scanning and handheld computing markets [9][10] Company Strategy and Development Direction - The company plans to control costs while sustaining investments in research and development, particularly related to Apple sales opportunities [6] - The strategy includes entering the ruggedized mobile handheld computing market to reduce dependence on retail [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the business environment remains uncertain, leading to delays in projects and a slowdown in deployments [4] - The outlook has changed to expect EBITDA neutrality rather than profitability for 2025 [6] Other Important Information - Operating expenses for Q2 were $2.7 million, down from $3.1 million in the same quarter last year [13] - Inventory as of June 30 was $4.8 million, down from $5.3 million at the end of Q1, reflecting tighter inventory management [15] Q&A Session Summary Question: No questions were asked during the Q&A session - There were no questions from participants during the call [16]