Socket Mobile(SCKT) - 2021 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company's Q2 2021 revenue was $6 million, a 119% increase compared to $2.7 million in Q2 2020, driven by business applications in the retail industry [7] - Operating income for Q2 2021 was $814,000, compared to an operating loss of $810,000 in the prior year [8] - Q2 net income was $2.6 million, which included a $1.9 million tax benefit adjustment [8] - Gross margin increased to 55% in Q2 2021 from 50% in the same period last year and 53% sequentially from Q1 2021 [14] - Adjusted EBITDA in Q2 was $1.2 million, compared to a loss of $500,000 in Q2 2020 and earnings of $570,000 in Q1 2021 [16] Business Line Data and Key Metrics Changes - Revenue growth was primarily driven by retail-centric customers, particularly Shopify and Square [9] - The company expects continued strong demand in retail and improvements in Commercial Services, Logistics, and Healthcare segments [10] Market Data and Key Metrics Changes - The company is experiencing strong demand in the NFC market, which is currently payment-centric, with expectations for significant revenue growth from NFC-centric products in 2022 and beyond [11][12] Company Strategy and Development Direction - The company is investing in NFC-centric products and aims to provide comprehensive solutions to development partners [11][12] - The management is focused on navigating supply chain challenges through supplier diversification and inventory management [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for products continuing throughout 2021, despite supply chain issues [13] - The company is pleased with its progress in the first half of the year and acknowledges the hard work of its employees [18] Other Important Information - The company has achieved operating profits for five consecutive quarters [14] - The current ratio as of June 30th was 3.2%, indicating a strong balance sheet [16] - Singular Research initiated coverage of the company's stock, promoting its app-driven business model [17] Q&A Session Summary Question: Why are there no options traded on Socket Mobile's stock? - Management clarified that they are listed on NASDAQ and are not aware of the specifics regarding options trading, which is managed by market makers and consumers [23]