Socket Mobile(US:SCKT)2022-04-28 23:52Financial Data and Key Metrics Changes - In Q1 2022, revenue increased by 31% to $6.3 million compared to $4.8 million in Q1 2021 [5] - Gross margins decreased to 49.7% from 52.1% in Q1 2021 due to higher component and freight costs [5] - Earnings per share rose to $0.04 from $0.03 in Q1 2021 [5] - Operating income was $464,000, representing a 7% operating margin [18] - Adjusted EBITDA increased to $0.9 million, up 57% from the prior quarter [18] Business Line Data and Key Metrics Changes - Significant progress was made with the Capture SDK software tools, including the announcement of Capture SDK for Flutter, which is used by over 2 million developers [9] - The launch of the SocketCam C820, a new product that turns mobile devices into high-performance barcode scanners, was highlighted [10] - The company aims to expand its offerings to serve a wider audience, from price-sensitive to performance-sensitive customers [11] Market Data and Key Metrics Changes - The company is experiencing supply chain challenges, particularly with the availability of printers and cash stores for mobile point-of-sale deployments [6] - Inventory levels increased to $5.2 million from $3.7 million a year ago, enabling the company to meet customer demand despite supply constraints [19] Company Strategy and Development Direction - The company is focused on becoming a more comprehensive data capture company and is investing in the digital ID and mobile driver's license space [13] - The strategy includes reducing discounts and increasing sales in lower discount channels to recover margin losses [15] Management's Comments on Operating Environment and Future Outlook - Management expects supply chain issues to remain challenging for most of 2022 but believes the situation is stabilizing [6] - The company is building a solid foundation for future revenue growth, with expectations for stronger performance in 2023 and beyond [8] Other Important Information - The company ended Q1 with a cash balance of $5.4 million and a current ratio of 2.8 to 1, indicating a strengthened balance sheet [19] - A share buyback program was approved, targeting the repurchase of 91,000 shares in Q2, with 71,000 shares already repurchased at an average price of $4.15 [19] Q&A Session Summary Question: How will the free C820 product help increase revenue and earnings? - Management explained that the free C820 product aims to reduce the rework cycle for application developers by allowing them to integrate both camera-based and dedicated scanning solutions [22][24] Question: What was the total units sold during Q1? - The company sold 27,700 units in Q1, which is an increase from the previous quarter [27][28] Question: What is the purpose of the share buyback program? - Management stated that the share buyback is intended to show confidence in the stock and to reduce the number of shares outstanding, as they believe the stock is undervalued [42][43]