Q4 2021 Socket Mobile Inc Earnings Call
Speaker 1: Welcome to the Q4...
Welcome to the Q4 2021.
Speaker 1: annual financial results management conference call. My name is Adrienne and I'll be your operator for today's call.
Financial results Management Conference call. My name is Adrian and I'll be your operator for today's call before we begin I would like to remind everyone. This conference call may contain forward looking statements within the meaning of section 27, a of Securities Act of 1933, yes.
Speaker 1: Before we begin, I'd like to remind everyone that this conference call may contain four looking statements within the meaning of Section 27A of Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended.
Amended and section 21 E of.
The Securities and exchange after 1934 as amended such forward looking statements include but are not limited to statements regarding mobile data collection and mobile data collection products, including details on timing distribution and market acceptance of products and statements predicting the trends.
Speaker 1: Such forward-looking statements include, but are not limited to, statements regarding mobile data collection and mobile data collection products, including details in timing, distribution, and market acceptance of products and statements predicting the trends, sales, and market conditions, and opportunities in the markets in which to stock a mobile sales product.
And market conditions and opportunities in the markets in which a socket mobile sells its products.
Speaker 1: such statements and valid risks and uncertainties in actual results could differ materially from the results anticipated in such forward-looking statements.
Such statements involve risks and uncertainties and actual results could differ materially from the results anticipated in such forward looking statements because of a number of factors, including but not limited to the risks of manufacture of sockets products may be delayed or not rolled out as predicted due to technology called market or financial factors, including the ability.
Speaker 1: Because of a number of factors including, but not limited to, the risk that the manufacturer of sockets products may be delayed or not rolled out as predicted due to technological, market or financial factors, including the availability of product components and necessary working capital.
Our product components and necessary working capital the rest of the market acceptance and sales opportunities may not happen as anticipated and there was that sockets application partners and current distribution channels. They choose not to distribute the products or may not be successful in doing so the risk.
Speaker 1: The risk of market acceptance and sales opportunities may not happen as anticipated, and the risk of SOCKIT's application partners and current distribution channels may choose not to distribute the product or may not be successful in doing so. The risk of acceptance of SOCKIT's products and vertical application markets may not happen as anticipated, as well as all the risks described in SOCKIT's most recent forum, 10-K, and 10-K reports about security exchanges.
The acceptance of sockets products and vertical application markets may not happen as anticipated as well as other risks described in sockets. Most recent Form 10-K , and 10-Q reports about the Securities and Exchange Commission socket does not undertake any obligation to update any forward looking statements.
Speaker 1: SACIT does not undertake any application to update any forward-looking statement.
Speaker 1: At this time, all participants are in listen-only mode. Later, we'll conduct a question-answer session. During the question-answer session, if you have a question, please press star, then one on your touchtone phone. Please note this conference is being recorded. On the phone with me, I have Kevin Mills, President and CEO , David Holmes, Chief Business Officer, and Lynn Zhao, Chief Financial Officer. I'll now turn the call over to Kevin Mills. Kevin, you may begin. Thank you, operator.
At this time all participants are in a listen only mode. Later, we'll conduct a question and answer session. During the question and answer session. If you have a question. Please press Star then one on you touched on the phone. Please note. This conference is being recorded on the phone with me I have Kevin Mills, President and CEO , David Holmes, Chief Business Officer, and Lynn Zhao.
<unk> Financial Officer, I'll now turn the call over to Kevin Mills, Kevin You may begin.
Thank you operator.
Good afternoon, everyone and thank you for joining us today.
Speaker 2: I want to start with a quick review of 2021 and our Q4 results, and I'll hand the call over to Dave Holmes, who will outline the product adjustments and improvements in our go-to-market strategy.
I wanted to start with a quick review of 2021.
Our Q4 results.
On the call over to Dave Holmes, who will outline the product adjustments and improvements in our go to market strategy.
Speaker 2: We believe these improvements will enable Pocket Mobile to maintain its track record of growth for the next few years. 2021
We believe these improvements will enable socket mobile to maintain.
Growth for the next few years.
2021 was a very good year for socket mobile with.
Speaker 2: We grow our revenue by 48% to $23.1 million.
We grew our revenue by 48% to $23 $1 million.
Speaker 2: we maintained our gross margin in the 53% range and reported operating income of $2.7 million.
We maintained our gross margin in the 53% range and reported operating income of $2 $7 million.
Speaker 2: Lin Zhao will provide a more detailed breakdown of our financial results in a few minutes.
I will provide a more detailed breakdown of our financial results in a few minutes.
Speaker 2: Our 2021 results show the progress we have made as a company over the past 12 months.
Our 2021 results show the progress we have made as a company over the past 12 months.
Speaker 2: We achieved these results in a very difficult environment by maintaining our focus on the data capture market and a great deal of hard work by our amazing team here at Target Mobile.
We achieved these results in a very difficult environment by maintaining our focus on the data capture market and a great deal of hard work by our amazing team here at socket mobile.
Speaker 2: The improvements also highlight the benefits of our application-driven business model and the leverage it brings over time as we continue to benefit from the success of our application partners.
We have proof was also highlights the benefits of our application driven business model and the leverage it breaks overtime as we continue to benefit from the success of our application partners.
Switching to our Q4 results.
Speaker 2: In Q4, we grew our revenue by 31% to $6.1 million.
In Q4, we grew our revenue by 31% to six $1 million.
Speaker 2: Our gross margins were slightly lower at 52.1%.
Our gross margins were slightly lower at 52, 1%.
Speaker 2: primarily due to increased costs associated with supply chain difficulties, resulting in an operating income of $700,000 for the quarter.
I'm really due to increased cost associated with supply chain difficulties.
And then operating income.
$700000 for the quarter.
These are very good results for Q4, which is a seasonally weak quarter for retail related to plant.
Speaker 2: These are very good results for Q4, which is a seasonally weak quarter for retail related supplies.
Speaker 2: So we enter 2022 a significantly stronger and better company than we entered 2021.
So we enter 2022 and significantly.
Significantly stronger and better company than we entered 2021.
Speaker 2: In addition to the financial progress we made in 2021, we also learned a great deal from our application partners and feel we are much better positioned to serve their going forward data capture needs.
In addition to the financial progress we made in 2021, we also learned a great deal from our application partners and feel we are much better positioned to serve going forward data capture needs.
I'd now like to turn the call over to Dave Holmes, who will outline how we will better serve this market moving forwards.
Speaker 2: I'd now like to turn the call over to Dave Holmes, who will outline how we will better serve this market moving forward. Dave.
Thank you, Kevin and good afternoon, everyone.
Speaker 3: When I joined socket in the middle of last year, we embarked on a mission to strengthen our strategy to become a more comprehensive data capture company.
When I joined socket in the middle of last year, we embarked on a mission to strengthen our strategy to become a more comprehensive data capture company.
Speaker 3: We made great strides in the NFC market, which you may have heard about in our previous calls. And today, I'd like to highlight another key element of that strategy.
We've made great strides in the NFC market, which you may have heard about in our previous calls and today I would like to highlight another key element of that strategy.
Speaker 3: The announcement we made earlier this week introducing the socket cam C820. This is the first member of the new socket cam software product family that turns any mobile device into a high performance barcode scanner. We think this is a critical piece in the
The announcement, we made earlier this week introducing the socket Cam CA 20.
This is the first member of the new socket Cam software product family that turns any mobile device into a high performance barcode scanner.
We think this is a critical piece and the data capture journey.
Today socket mobile scanners are primarily used in the performance sensitive portion of the data capture market.
Speaker 3: Today, Socket Mobile scanners are primarily used in the performance sensitive portion of the data capture market, which we have a commanding market share in.
We have a commanding market share in.
Speaker 3: However, our application partners have end users with different data capture needs and are often not data capture experts.
However, our application partners have end users with different data capture needs are often not data capture experts.
Speaker 3: They typically only add our capture SDK to support socket scanners when their customers run into performance issues.
Typically only at our capture SDK to support socket scanners, when their customers run into performance issues.
Speaker 3: Our research and experience tell us that data capture is a journey, and our end customers' requirements evolve over time.
Our research and experience tell us the data capture is a journey and our end customers requirements evolve over time.
Through our customer feedback.
Speaker 3: We know that roughly 70% of our end users started out using a keyboard or camera-based scanning before they came to a socket scanner.
We know that roughly 70% of our end users started out using a keyboard or camera based scanning before they came to a socket scanner.
Speaker 3: While free scanning works very well in low volume, well-lit environments, it can struggle as volumes increase or conditions become more difficult.
While free scanning works very well in low volume well lit environment. It can struggle as volumes increase or conditions become more difficult.
Speaker 3: The addition of the C820 will allow our development partners to bring socket's scanning expertise and capabilities to a much wider audience.
The addition of the CA 20 will allow our development partners to bring sockets scanning expertise and capabilities to a much wider audience.
Speaker 3: allowing our app partners to serve all their end users, from the price sensitive to the performance sensitive, with one integration.
Allowing our partner to serve all of their end users from the price sensitive to the performance sensitive with one integration.
Speaker 3: Enabling the app for the entire journey allows the developers to service a much bigger audience, eliminates the burden of lengthy and technical onboarding processes, and allows the end customers to select the best tool for their particular situation.
Enabling the app for the entire journey allows the developers to service a much bigger audience eliminates the burden of lengthy and technical onboarding processes.
It allows the end customers to select the best tool for their particular situation.
Speaker 3: We will continue investing in the SocketCam family to offer data capture solutions that benefit our developer community and end users.
We will continue investing in the socket camm family.
To offer data capture solutions that benefit our developer community and end users.
Speaker 3: We have an advanced version available. We will have an advanced version available on the subscription basis later this year. And we think this is a critical evolution in how socket serves the entire data capture journey.
We have an advanced version available.
We will have an advanced version available on the subscription basis later this year.
And we think this is a critical evolution in how sockets serves the entire data capture journey.
Speaker 3: With that, I'll turn it over to Lynn for more details on our financial results.
With that I'll turn it over to Lynn for more details on our financial results.
Lynn.
Speaker 4: Thank you, Dave, and good afternoon to everyone.
Thank you, Dave and good afternoon to everyone.
Speaker 4: We are very pleased with our 2021 results as we continue to grow our business and strengthen our financial position.
We are very pleased with our 2021 results as we continue to grow our business and strengthen our financial position.
Speaker 4: We drove strong double-digit year-over-year revenue growth, growth margin improvement, and a record of operating profitability, while continuing to invest in product roadmaps.
Strong double digit year over year revenue growth gross margin improvement and a record operating profitability, while continuing to invest in product product roadmap.
Speaker 4: Year over year, Q4 revenue was up 31% to $6.1 million, and annual revenue was up 48% to $23.2 million, driven by strong demand for our products as we benefited from the economic recovery and the flywheel effect of our application-driven business model.
Year over year, Q4 revenue was up 31% to $6 1 million.
Annual revenue was up 48% to $2 20 to $8 2 million driven by strong demand for our products as we benefited from the economic recovery and the flywheel effect of all of our application driven business model.
Speaker 4: Q4 growth margin was 1% lower than a year ago due to the rising component cost.
Q4, gross margin was 1% lower than a year ago due to the rising component costs.
Speaker 4: For the year, however, our growth margin is 1.5% higher, which is the benefit of the increased revenue.
For the year. However, our gross margin is the one 5% higher.
The benefit of the increase there.
Speaker 4: Although we are confident that our focus on navigating the supply constraints will enable us to continue to meet our customers' needs.
Although we are confident that our focused on navigating the supply constraints will enable us to continue to meet our customers' needs.
Speaker 4: the ongoing industry-wide electronic component shortages could result in future higher component production costs.
The ongoing industry wide electronic component shortages could they result in future higher component production costs.
Operating expenses in Q4 were $2 $5 million increased 28% over the prior year quarter.
Speaker 4: Operating expenses in Q4, or $2.5 million, increased 28% over the prior year quarter.
Speaker 4: spend on engineering and product development led the way as our priority investment area increased 46%.
Then our engineering and product development that way at all.
Are the investments area.
Increased 46%.
Speaker 4: Increases in general and administrative and the sales, marketing and customer support are 28% and 19% respectively.
Increases in general and administrative.
And the sales marketing and customer support are 28% and 19% respectively.
Speaker 4: Our full year operating expenses increased 18% compared with the prior year if excluding the non-cash goodwill impairment charge of 4.4 million in 2020.
Our full year operating expenses increased 18% compared with the prior year, excluding the noncash goodwill impairment charge of $4 flat or many in 2020.
Speaker 4: Their increase in 2021 reflects the costs associated with a higher headcount investment in technology, consulting and external professional services, and an increase in compensation related to improve the company performance.
The increase in 2021 reflects the costs associated with a higher headcount investments impact plenty consulting and external professional services and the increased compensation related to improve the company performance.
Speaker 4: We believe a continued commitment to invest in talent and technology is essential to provide a new product offering and to better service our development partners.
We believe our continued commitment to invest in talent and the technology is essential to provide a new product offerings and to better service our development partners.
In Q4, we had a net income of $1, one many including deferred tax benefit of <unk>.
Speaker 4: In Q4, we had a net income of $1.1 million, including a deferred tax benefit of $1.1 million.
$299000.
Speaker 4: $29,900 compared to $1.9 million in the comparable prior year quarter, which included a gain of $1 million under forgiveness of PPP law.
Compared to $1 $9 million in the comparable prior year quarter.
<unk> included a gain.
$1 million on the forgiveness of the PPP loan.
Speaker 4: Net income for the year was $4.5 million, including a deferred tax benefit of $1.9 million.
Net income for the year was at $4 $5 million, including a deferred tax benefit of $1 $9 million.
Speaker 4: compared to a loss of $3.3 million in 2020, which included $3.3 million of a goodwill impairment charge, netting off the gain on PPP loan forgiveness.
Imperative to a loss of $3 $3 million in 2020, which included $3 $3 million off a goodwill impairment charge, netting all star game on PPP loan forgiveness.
Speaker 4: The deferred tax benefits recorded in 2021 are due to the recognition of tax deductions resulting from disqualified disposition of incentive stock options, disposition of non-qualified stock options, and divest of employee restricted stock awards.
The deferred tax benefit recorded in 2021 are due to the recognition of tax deductions, resulting from this a qualified disposition of incentive stock options.
As a position of nonqualified stock options.
And to divest of employees.
<unk> stock awards.
Speaker 4: Adjusted EBITDA in 2021 increased to $4.2 million compared to $1.2 million in 2020. Adjusted EBITDA margin in 2021 was 18% compared to 8% in 2020.
Adjusted EBITA in 2021 increased to $4 2 million compared to $1 $2 million in 2020, adjusted EBITDA margin in 2021 was the 18%.
Compared to two 8% in 2020.
Speaker 4: Q4 adjusted EBITDA was 1.1 million versus $0.8 million a year ago.
Q4, adjusted EBITDA was a $1 1 million versus.
$8 million a year ago.
Turning to our balance sheet we.
Speaker 4: We continue to focus on driving strong cash flow. In 2021, we generated a record $2.1 million in cash from operations, compared to $0.8 million generated in 2020.
We continue to focus on driving strong cash flow in 2021, we generated a record of $2 $1 million in cash from operations compared to $2 8 million generated in 2020.
Speaker 4: We ended the year with a cash balance of $6.1 million compared to $2.1 million a year ago.
We ended the year with a cash balance of $6 1 million compared to $2 $1 million a year ago.
Speaker 4: As of December 31st, 2021, our inventory level net of reserve was at $5.2 million compared to $3.2 million a year ago.
As of December 31st 2021, our inventory level net of reserve was at five $2 million compared to $3 $2 million, So a year ago.
Speaker 4: Their increased inventory enables us to service our customers' full demand while navigating the supply constraints.
The increase the inventory enables us to service.
Customers have fully demand while navigating this supply constrained.
Speaker 4: Our balance sheet has been further strengthened with the current ratio of 2.7 to 1 as of December 31st, compared to 1.9 to 1 a year ago.
Our balance sheet has further strengthened with the current ratio of two 7% to one as of December 31, compared to one nine to one a year ago.
Speaker 4: Now I will talk about their Shared Buyback Program approved by our Board of Directors.
Now I will talk about their share buyback program approved by our board of directors.
Speaker 4: after evaluating the company's financial statements for the year, as well as the recent developments of the company.
After evaluating the company's financial statements for the year as well as the recent developments of the company.
Speaker 4: The board determined that the company has sufficient surplus as computed in accordance with Section 154 of the General Corporation Law of the State of Delaware for the stock of a purchase program.
The board determined that the company has sufficient surplus as a computed in accordance with <unk>.
Section $1 54 of their General Corporation law of.
The state of Delaware for the stock repurchase program.
Speaker 4: The use of the funds will not impair the company's capital, but rather the company will continue to have sufficient resources to operate for their foreseeable future. And currently, and following the repurchase program, the company's existing debts will not exceed the present value of the company's assets.
The use of the funds will not impair the company's capital, but rather the company will continue to have sufficient resources to operate for the foreseeable future and are currently in the following the repurchase program.
The company the existing debts will not exceed the present value of the company's assets.
Speaker 4: even if the stock repurchase program is completed in full.
Even if there.
Stock repurchase program is completed in full.
Speaker 4: The board hereby determined that the stock repurchase program is in the best interest of the company and its shareholders. And the board approved the program.
Albert are hereby determine that the stock repurchase program is in the best interest of the company and its shareholders and the board approved the program.
Speaker 4: All repurchases will be conducted in accordance with SEC Rule 10b-18. We will enter 10b-51 plan during the open window and our broker will execute the trade.
All repurchases will be conducted in accordance with SEC rule <unk> 18.
Enter can be five one.
During the open window and our broker will execute their trades.
Speaker 4: This wraps up our prepared remarks. Now I'll hand the call over to the operator for questions.
This wraps up our prepared remarks now.
And the call over to the operator for questions.
Thank you we will now begin the question and answer session.
Speaker 1: If you have a question, please press star, then one on your touch tone phone.
You have a question. Please press Star then one on your Touchtone phone.
Speaker 1: If you wish to remove the cue, please press the pound sign or the hash key. There will be a delay before the first question.
If you wish to remove the queue. Please press the pound sign or the hash key Dolby.
There'll be a delay before the first question is announced.
Speaker 1: using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if you have a question, please press star then one on your touch tone phone. And our first question comes from Frank Petronas from Wells Fargo. Your line is open.
You're using a speakerphone you may need to pick up the handset first before pressing the numbers.
Once again, if you have a question. Please press Star then one on your Touchtone phone and our first question comes from Frank <unk> from Wells Fargo. Your line is open.
Congratulations on your.
Speaker 5: rate of growth considering the COVID situation and again the other variants that are
<unk> of growth considering the COVID-19 situation.
Again.
Other variances.
And what about I think you've done a great job of stock.
Speaker 5: stock repurchase program. I have a question as far as in 2016.
Stock repurchase program I've a question is fine.
2016.
<unk>.
Speaker 5: the NASDAQ. Now I posed a question to you I guess about six months ago and as far as you're going to
Entered the NASDAQ now I pose the question to you I guess about six months ago.
As far as Youre going to consult with the board.
Possibility.
Speaker 5: possibility of getting more eyes and more funds or institutional type of investors.
The more I am more funds institutional.
Hi.
Investors.
Two.
And.
Speaker 5: build from the New York Stock Exchange where again.
Build from the New York Stock Exchange, where again I think that.
Up and down.
Speaker 5: up and down gyrations have been horrible. I mean the average investor, I'm a former
These have been horrible I mean, the average investor I'm, a former retail broker so what I'm, saying is people that I could speak with and have bought the company.
Speaker 5: So what I'm saying is people that I did speak with and have bought.
Speaker 5: It's been like, you know, a nightmare. One day you see what your account is, next day it flops right back down. I think you can get a lot more stability if you can.
It's been like.
A nightmare one day, you'll see what your calendars next day it flops right back down I think you can get a lot more stability if you can.
Again get listed on the New York Stock exchange in and stopped all this.
Speaker 5: again get listed on the New York Stock Exchange and stop all.
Speaker 5: I think the flipping with the interest rate rise and so forth, it should soothe over.
Flipping I think the flipping with the interest rate rise and so forth it should sort of over.
Speaker 5: So my question is, have you guys considered a listing on the New York Stock Exchange?
So my question is have you guys considered a listing on the New York stock exchange.
Speaker 2: Well, there's a lot in those questions, Frank. So let me just kind of address a few of them. I think that there's a lot of instability in the market and certainly with a lower price in the availability of programs like Robinhood, there tends to be a lot of emotion driving the stock as opposed to funding.
Well, there's a lot of notes.
Questions. Frank So let me just kind of address a few of them.
I think that.
There's a lot of <unk> in the market and certainly with a lower price and the availability of programs like Robin Hood.
There tends to be a lot of emotion driving the stock as opposed to fundamentals.
Speaker 2: I think as we look to 2022, we will make a more concerted effort to
I think as we look to 2022 alright.
We will make a more concerted effort to.
Speaker 2: get to conferences to explain our story which we now feel is sufficiently strong. We are doing a singular research conference as well as a capital research conference in the near future. So we will reach out more and I think you are right, the more institutional investors we can guess.
Get to conferences to explain our story, which we now feel is sufficiently strong.
We are doing a singular research conference as well.
Capital Research conference in the near future.
So we are we will reach out more on I think you are right the more institutional investors we can get.
Speaker 2: the more stability it will bring to the market, after the stock prices.
The more stability it will bring to the markets.
After the stock price issue.
Speaker 2: And I think, you know, this is one of the reasons why we're doing the buyback program is because the.
And I think you know.
This is one of the reasons why we're doing the buyback program is because of the market price also doesn't reflect the value of the company.
Speaker 2: Market price often doesn't reflect the value of the company and we feel that as we have surplus cash it would be good.
And we feel we have surplus cash it would be good to show our commitment to the long term future by doing the repurchase program. So we have no funds in the short term to get on the second exchange.
Speaker 2: to show our commitment to the long term future by doing the repurchase program. So we have no plans in the short term to get on a second exchange.
Speaker 2: We've been on Aztec for many years and as you point out, we...
We've been on NASDAQ for many years.
As you point out.
We are.
We basically we entered that market in fact, we were on the NASDAQ market for many years.
Speaker 2: We basically, we entered the NASDAQ market. In fact, we were on the NASDAQ market for many years and we were out of compliance and got back in compliance in 2016. So we hope to see some more stability in the stock price this year, especially as we get more institutional investors. I don't think we can do a lot about the Reddit or the Robinhoods in the short term. So I hope that answers your question.
We were out of compliance and got back in compliance in 2016.
So we hope to see some more stability in the.
This year, especially as we get more institutional investors.
I don't think we can do a lot about the <unk> or the <unk>.
Robin hoods and the short term.
So I hope that answers your question.
Oh, yes part.
In part yes. The only other thing is you can say the robinhood people I think they have been slept on our hand, and it's evidenced by their own stock that's been trading again.
Speaker 5: Only got the thing is...
Speaker 5: say the Robin Hood people, I think they have been slapped on the hand and just evidenced by their own. Then you Had to take that at the end.
Everything they've done.
Speaker 5: Everything they've done I think is wrong, but I think you more than qualify
Think is wrong.
I think you more than qualified what are your exchange when I was with.
Speaker 5: Prudential and then another major firm. We always had a problem
Credential and then another major firm, we always had a problem with the smaller companies that we always had the right unsolicited and so forth, but I'm, saying the.
Speaker 5: companies that we always had to write unsolicited and so forth but I'm saying
Speaker 5: It's just the in between the quarters. I mean, if you're going to have more transparency, that's wonderful. A buyback could help.
It's just the in between the quarters.
If you're going to have more transparency that's wonderful.
Buyback.
It helped to stomach.
Some extent, but.
Okay.
Speaker 5: stock jump just pre well after
The stock jumped.
Just pre well aftermarket I should say jumped at like $5 68, I don't think it's back to $5 again, but it's that kind of thing.
Speaker 5: jump to like $5.68 and think it's back to $5 again. But it's that kind of thing that I think the company should look for more stability. You know, your growth is fantastic.
I think.
The company should look for more stability.
Growth is fantastic.
Speaker 5: You're on a 45 degree curve that.
40.
Five degree curve.
You know more than average in this climate.
Speaker 5: more than average in this climate. It's amazing and I congratulate you guys. And that's it. I thank you again for answering the question.
He and I congratulate you guys.
Thank you again for answering the question.
We appreciate the questions right. Thank you very much.
Okay.
Speaker 1: And just as a reminder, if you ask a question or enter the queue, please press star and one on your touch tone phone. And we're standing back for more questions.
And just as a reminder to ask a question or entered the queue. Please press Star then one on your Touchtone phone and who are standing by for more questions.
Speaker 1: And we have Frank Petronas from Wells Fargo.
And Frank Petronas from Wells Fargo. Your line is open.
Speaker 5: I do have one more. I have about 15, maybe 20 of my
I do have one more.
I have about.
And maybe one of my former clients that.
Speaker 5: you know, come to me and look for various recommendations. Now the other problem is
Come to me and look for various recommendations now the other problem is.
Speaker 5: understanding of the...
The understanding of the I'm not.
Peter.
Speaker 5: I mean, but these people are much more advanced than I am, but I think if you can kind of lay it out in layman's terms and explain...
Guy myself.
But these people are much more advanced than I am, but I think if you can kind of lay it out in layman's terms and explain.
Speaker 5: from that point where we can get a little more transparency as far as these products are coming online and exactly what they mean down the road for I think...
From that point, where we can get.
A little more.
Parents as far as these products are coming online.
Exactly what they mean.
On the road.
For I think.
Hello, Greg.
Speaker 5: explanation for the previous product and the new one I I've gotten two calls and they
Explanation for the previous product and the new one.
I've got two calls and they nobody really understands.
Speaker 5: uh... made the computer jenches and the the kids today that they could probably understand it
Maybe the computer geniuses and.
The kids today that they could probably understand that.
Much better than in a workhorse like me.
Speaker 2: So, so let me try and explain a little bit. So.
So let me try and explain a little bit.
So.
Speaker 2: We are dependent on our developers to enable our software so that people can use our skin.
We are dependent on our developers to enable.
Our software.
People can use our scanners.
Speaker 2: Our research has shown that many of the people who buy our...
Our research has shown that many of the people who buy our scanners.
Speaker 2: have gone from keyboard or camera-based scanners to our scanners. And what we're trying to do is to ensure that we service those customers earlier to smooth out the onboarding process so that as they need more
Have gone from keyboard are camera based keyboards camera based scanners.
Two our scanners.
And what we're trying to do.
To ensure that we service those customers earlier too.
Smooth out the on boarding process, so that as they need more.
Speaker 2: functionality out of their scanner, they can use the current app.
Functionality out of the scanner they can.
Use the current application they have.
Speaker 2: Today, it often takes us an extra year to even two years.
Today, It often takes us an extra year to even two years.
Speaker 2: when customers need to use the more performance-centric scanners, but their application doesn't support it. So there's a development cycle, and we're trying to minimize that development cycle to make it easier for people who need performance-based.
When customers need to use the more performance centric, Scotland, but theyre application doesn't support it. So there is a.
<unk> cycle, and we're trying to minimize that development cycle to make it easier for people who need performance space again.
Speaker 2: It's a little bit complicated, I would agree. Our business model is a little bit complicated because we sell through our application partners and they enable their customers to buy our products.
It's a little bit complicated I would agree.
Our business model is a little bit complicated.
Because we sell through our application partners.
Yes.
There, we enable they enable their customers to buy our products.
Speaker 2: So this is why we refer to it as an application-driven business model, because the application-
So.
This is why we refer to it as a business.
Our application driven business model because.
The application comes first.
Speaker 2: We're trying to improve, and in fact we have improved a lot on our webpage, how we inform people about our story and I think as we go out to investors that scenario will continue to work on to simplify the story even though it is a little bit complicated. Okay great. The thing I do want to.
We're trying to improve.
We have improved the loss on our webpage.
How we inform people about our story.
I think as we go out to investors. That's an area. We'll continue to work on to simplify the story, even though it is a little bit competitions.
Okay great.
The thing that I do.
Reemphasize again, you guys have not stumbled in the last two years.
Ben.
Speaker 5: invested in the company. I've not seen any step backwards. A lot of companies.
And the company.
Not seen any step backwards.
Companies have been really.
Speaker 5: falling back and then trying to recover. It's been a tough road. You guys are not there and that's what I commend you again on it.
Falling back and then trying to recover it's been a.
Tough road.
I'm not there and that's what I commend you again on that.
Well jump on anybody else's questions.
Thank you again.
Thank you Frank.
And just as a reminder entered the queue. Please press Star then one on your touch on phone and your next question comes from William Carroll from empower your line is open.
Speaker 1: Just as a reminder to enter the queue, please press star of N1 on your touchtone.
Speaker 1: and a question comes from William Carroll from MPower.
Speaker 3: yeah just a question about the share repurchase program what will that just be at the company's discretion from time to time or do you have a planned approach objective
Yes, just a question about the share repurchase program.
Just be at the company's discretion from time to time or do you have a plan.
Purchase activity.
Speaker 4: We're going to enter a 10B5 plan next week. We'll be including a 45-day waiting period. That's all. This is following the SEC rules. Then after that, the plan will be in our broker's hands to execute.
We're going to enter it can be five plan.
Next week, we'll be including a 45 day waiting period, following the SEC rules and after that.
Okay.
<unk> will be in our brokers and to execute.
Okay, great. Thank you.
Welcome.
Speaker 1: And just as a reminder to enter the queue, please press star and one on your touch tone phone. Again, let's start one to ask a question.
And just as a reminder to enter the queue. Please press Star then one on your Touchtone phone.
Again, the star one to ask a question.
And currently we have no further questions.
Speaker 2: Okay, so let me just finish by saying we feel we've made significant progress in 2021 and feel we've established a solid foundation that will enable us to grow our revenue and importance in the data capture market in the next few years. And I'd like to thank everyone for your time and an interest in SocketMobile and wish you all a good afternoon. Thanks.
Okay. So let me just finish by saying we feel we've made significant progress in 2021.
Established a solid foundation that will enable us to grow our revenue and the importance and the data capture market in the next few years and I'd like to thank everyone for your time and interest in socket mobile and wish you all a good afternoon.
Yes.
Speaker 1: Thank you ladies and gentlemen. This concludes today's conference call. Thank you for participating and you may now disconnect.
Thank you ladies and gentlemen. This concludes today's conference call. Thank you for participating and you may now disconnect.
Okay.