Q3 2024 Socket Mobile Inc Earnings Call
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Speaker Change: Products were built for the industrial barcode scanning market facilitating the use of iphones and iOS applications in rugged work environments.
Speaker Change: We introduced a new member to the extremes can family. The <unk> 640, specifically designed for the transportation and logistics market.
Speaker Change: Our unique design was built for D Y O D or bring your own device.
Speaker Change: It can be used with any mobile device opening up the market for extreme scan to larger iphones and ipads as well as Android phones and tablets.
Speaker Change: Delivery drivers can use their own mobile devices for communication navigation photos, and then connect to extreme scan to enable high performance barcode scanning.
Speaker Change: We think it's perfect for small and medium sized delivery operations, which often use independent drivers.
Speaker Change: It has been very well received by the first companies evaluating the device.
Speaker Change: Workers love it because they no longer have to carry multiple devices.
Speaker Change: Extreme skin represents a significant milestone in our commitment to delivering high quality data capture solutions for our customers and industrial manufacturing warehousing transportation energy and airports.
Speaker Change: Extreme scan is designed to enable mobile phones to withstand harsh environments.
Speaker Change: And offer robust scanning capabilities with the ultimate durability.
Speaker Change: We are getting the opportunity showcased these products to dozens of airlines at a private event this quarter, which were excited about as well extreme scan is opening the door.
Speaker Change: Into new customer segments, and the massive ruggedized computers computing space.
Speaker Change: These customers demand the ultimate performance and the most difficult environments.
Speaker Change: In Q3, several customers, including marquee Fortune 50 customers continued putting these device these new products through rigorous testing.
Speaker Change: We pass some of the most intense testing with flying colors. Some of those customers now moving into proof of concept in pilot projects to put these devices into the hands of their frontline workers.
Speaker Change: Wider deployments are planned to start before the end of this year.
Speaker Change: And they will begin to contribute to our revenue in 2025.
Speaker Change: We've also made progress in promoting our camera based scanning technology early adopter at partners have integrated socket came into their platforms, enabling their customers to scan barcodes directly into their apps using their mobile device camera.
Speaker Change: The free and subscription versions of socket can enable our partners to serve diverse end user needs from the most cost sensitive with our free socket can CA 20.
Speaker Change: The more feature rich data data capture requirements with our subscription base socket can see age 60.
Speaker Change: And the most intense users can still access our array of heart handheld hardware scanners.
Speaker Change: All of these are made available to our App partners ecosystem with a single simple and free integration of our capture SDK.
Speaker Change: As adoption builds and end users upgrade the socket <unk> 60, this will generate a recurring revenue stream for us each month.
Speaker Change: Our new extreme products will extend our reach and diversify our customer base and allow us to enter the large ruggedized mobile computing market.
Speaker Change: Socket Cam opens the door for socket mobile to have recurring revenue stream each month for subs software subscriptions.
Speaker Change: Totally these initiatives will allow us.
Speaker Change: We will also make us a more diversified and sustainable and less dependent on retail.
Speaker Change: We are evolving into a more complete hardware and software data data capture company.
Speaker Change: With that I'll turn it over to Lynn for more details on our financial results.
Lynn: Thanks, Dave. Thank you everyone for joining today's call. Thank you to me our revenue increased by 21% to $3 9 million from $10, 2% totaling $2 million in the prior year's quarter.
Lynn: Decreased by 24% sequentially compared to $5 $1 million in the preceding quarter.
Lynn: Q3, our gross margin was 49% compared to 244% in the prior years quarter and 51% in the preceding quarter.
Lynn: Operating expenses for Q3 totaled $2 $9 million, reflecting a 4% increase compared to the prior year's quarter, and a decrease of 6% compared to $10 $1 million in the preceding quarter.
Lynn: During Q3, we recorded a net loss of $1 million or <unk> 15 per share compared to a net loss of $1 $3 million or <unk> 16 per share in Q3, 2023, and a net loss of $600000 or <unk> <unk> per share in the previous quarter Q.
Speaker Change: Q3, EBITDA is there.
Speaker Change: Negative $500000 compared it to a negative $800.
Speaker Change: In Q3 2023.
Speaker Change: And a positive asos.
Speaker Change: Previous quarter totaled.
Speaker Change: Total noncash expenses, including depreciation amortization and <unk> expenses.
Speaker Change: Our $530000 in Q3 2024.
Speaker Change: Our cash balance at the end of Q3 was $2 $9 million compared to $2 $8 million at the end of 2023 and $2 $1 million at the end of that.
Speaker Change: Prior year prior quarter, we completed of $1 million convertible note financing in August which would provide additional working capital to expand our market reach in the new industrial market.
Speaker Change: In Q3.
Speaker Change: Capex spending was $408000.
Speaker Change: This is Rob salmon of prepared remarks, now I will hand, the call over to the operator for questions.
Speaker Change: Thank you Ken if you'd like to ask a question. Please press star one on your telephone keypad now.
Speaker Change: You will be placed into the queue in the order received.
Speaker Change: Please be prepared to ask your question when prompted.
Speaker Change: Once again, if you have a question. Please press star one at this time.
Speaker Change: Yeah.
Speaker Change: And our first question will come from William Carol. Please go ahead.
William Carol: Yes, I've been a shareholder now for about five years.
William Carol: When does the company expect to at least start to breakeven or potentially make a profit.
Speaker Change: I think that we are.
Speaker Change: To make a profit in 2025.
Speaker Change: Yes.
Speaker Change: We have invested a loss in the industrial and the camera space over the last two years.
Speaker Change: We feel these investments.
Speaker Change: We will pay off in 'twenty five and beyond.
Speaker Change: That's really good news Kevin Thank you okay.
Kevin: Youre welcome.
Speaker Change: And once again, if you'd like to ask a question. Please press star one at this time.
Speaker Change: And it appears there are no further questions at this time, Mr. Miller ill turn the conference back to you for any additional or closing remarks.
Mr. Miller: Thank you operator.
Mr. Miller: We would just like to wish everyone. A good afternoon and thank you for participating in today's call.
Goodbye.
Speaker Change: And this concludes today's conference call. Thank you for attending.
Mr. Miller: Yeah.