Q1 2020 Earnings Call

[music].

Welcome to the Q1 2020 management conference call. My name is growing up your operator for today's call before we begin I would like to remind everybody that this conference call may contain forward looking statements within the meaning of section 27 eight of the Securities Act of 1933.

As amended and section.

21, the other Securities and Exchange Act of 1934 as amended such forward looking statements include but are not limited to statements regarding mobile data collection and mobile mobile data collection products.

Including details on timing distribution and market acceptance of products and statements predicting the trends sales.

Market conditions and opportunities in the markets in which.

Second mobile sells its products such statements involve risks and uncertainties and actual results could differ materially from the results anticipated in such forward looking statements because my number of factors, including but not limited to the risk that manufacture of socket products may be delayed or not rolled out and predict.

Hi, good due to technological market or financial factors, including the availability of product components and necessary working capital the respect market acceptance and sales opportunities may not happen as anticipated the risk that sockets application partners and the current.

Distribution channels may choose not to distribute the products.

Or may not be successful in doing so the risk that acceptance of sockets products in vertical application markets may not happen as anticipated as well as other risks described and sockets. Most recent form 10-K, and 10-Q reports filed with the Securities and Exchange Commission sockets.

Does not undertake any obligation to update any such forward looking statements. At this time all participants are in listen only mode. Later, we will conduct a question and answer session. During the question answer session. If you had a question. Please press Star then one on your Touchtone phone. Please note that this conference is being recorded.

On the call over to Kevin Mill, Kevin You may begin.

Thank you operator.

Good afternoon, everyone. Thank you for joining us today.

Our Q1 revenue was 4.2 million.

A decrease of 9% compared to Q1 2019.

Resulted in a loss of $90000 for the quarter.

Compared to a small profit of $12000 in Q1 29 team.

Our Q1 revenues were impacted by the Cobot 19 pandemic.

Especially in the second half of March.

It was over 70% of our business is driven by retail centric applications.

A business segment, which was severely impacted by the locked down.

We cannot be overly surprised by these results.

Well, we live in an extremely unpredictable times.

There is a high degree of uncertainty today.

We would like to share our current expectations for Q2.

Based on the limited days that we have collected since mid March.

We believe our retail centric business will continue to be severely impacted during Q2, and we expect demand will fall by more than 40%.

Some companies like Shopify, maybe less impacted and others may simply go away.

We believe commercial services and transportation centric applications will be less impacted during Q2.

Applications associated with food delivery and online shopping Macy increased demand for data capture products.

Well the current situation is extremely challenging.

There remains a great deal of uncertainty.

We believe socket mobile is better suited than most to survive in today's new reality.

Socket mobile is a data capture company and has a strong position in the I pad and Android data capture markets.

While our demand has been driven by small businesses deploying ipod based point to sell systems.

Our products and expertise are also used in many other pockets segments.

Such as delivery services inspection services and clinical settings.

Over the past 12 month, we have been expanding our product portfolio to cover harsh environments with our children scan product families.

With that and single handed requirements with our Jordan said.

Got it.

Hi products.

These products use the same tried and trusted data capture expertise.

And can easily be integrates into new applications.

In addition.

All our sales our application driven.

100% of our products are sold online.

Which has been the case for more than two years.

Therefore, we are more adaptable then most have very good quality in these fast changing times.

Finally.

We have received PPP funds.

Which enabled us to protect our workforce and meet or obligations as we determine the best course of action to ensure that we can vote survive in the short term and put ourselves in a position to service the requirements moving forward.

But that said I'd now like to turn the call over to Lynn's, though.

Sockets CFO <unk>.

That's correct.

Our gross profit bargain for the first quarter 20 timing.

7%.

51% in the first quarter 20 like home.

The operating expenses for the first quarter out 20, primal, what's your point Grey Merrill.

But your point Fourmillion Inc. first quarter up 29 cool.

Earnings before interest taxes depreciation.

So what 2000.

Filed in Colorado, or they can grow share in the first quarter up 2020, compared to 270000 <unk> per share in the first quarter a year ago under 2.8 70000.

For sure in that immediately preceding quarter.

The impact of the cold Midnight Kim.

To conclude <unk> Inc. Q2.

We are tightly managing our and the critical <unk> appraisal well.

In addition to leveraging bobbing credit facilities.

On April 20, we received the loan proceeds of 1 million dollar one Danny 8000.

And $100 I'm back he kept protection program.

The loan proceeds will be primarily instead to cover payroll costs right I mean could it be caught hearing about eight week period after 24.

Let people know enable us to maintain our staffing that wallet.

We expect that most of the amount borrowed if I look at both could be for gave them.

Principal and interest payments on any unforgiven portion of the PDP, though well be deferred for six months.

Well I cool entry and exit annually up 1%.

The remaining PPP loan balance will carry a two year like Turkey, but my Turkey rate.

Good day.

No no prepayment penalty on that PPP, though.

Our annual shareholder meeting will be held on Wednesday may 27, I'd call. It 30 am.

The meeting with originally planned that to be held at our accountable.

Due to the current.

Shelter in place or there will provide a pilot conference option quite anyone who thinks the interest they get to join bimodal remotely.

The voting results well be classic and pilot price to the mobile well.

Update on our website after for mobile.

Now, let's turn the call over to the operator for your questions Daryl.

If anyone has question you can press Star then one on your Touchtone phone. Once again, if you have a question. Yes Star then one our New York Touchtone phone and I'm standing by for questions.

Once again, that's scar then why did you have a question or comment.

And we have no questions at this time.

Okay, well, we would just like thank everyone for participating in today's call.

And wish you all a good afternoon. Thank you.

Dan. Thank you ladies and gentlemen. This concludes today's conference. Thank you for participating you may now disconnect.

[music].