NEWARK, Calif., Feb. 15, 2018 /PRNewswire/ -- Socket Mobile, Inc. (NASDAQ: SCKT), a leading innovator of data capture and delivery solutions for enhanced productivity, today reported financial results for the fourth quarter and year ended December 31, 2017.
Full Year Results:
Revenue for 2017 was $21.3 million, an increase of 2.4 percent over 2016 revenue of $20.8 million. Cordless barcode scanning revenue in 2017 was $20.4 million or 96 percent of total revenue compared to cordless barcode scanning revenue in 2016 of $17.9 million or 86 percent of total revenue, a year over year revenue increase of 14.1 percent.
Gross margins in 2017 were $11.4 million, or 53.5 percent of revenue, up from $10.4 million, or 50.2 percent in 2016, primarily due to component cost reductions and manufacturing efficiencies. Operating expenses in 2017 were $9.0 million compared to operating expenses in 2016 of $7.9 million, an increase of 14.0 percent. Net income before tax in 2017 was $2.3 million compared to net income before tax in 2016 of $2.4 million.
EBITDA or earnings before interest, taxes, depreciation and amortization totaled $3.2 million in both years. EBITDA was 15.3 percent of revenue in 2016 and 14.8 percent of revenue in 2017.
The Company reported income tax expense of $3.8 million in 2017 and a tax benefit of $9.7 million in 2016. Income tax expense in 2017 consisted of alternative minimum taxes payable of $51,000, deferred tax assets applied to 2017 income before tax of $1.1 million and a revaluation of deferred tax assets downward in the fourth quarter to reflect a lower effective corporate income tax rate applicable to 2018 and beyond estimated at 28 percent. Income tax expense in 2016 consisted of alternative minimum taxes payable of $82,000 and recording deferred tax assets of $9.8 million that were restored to the balance sheet at the end of 2016 and credited to net income. Previously the Company had accounted for income taxes using a full valuation allowance.
The Company's balance sheet at December 31, 2017 included cash of $3.4 million, up from cash of $1.3 million at December 31, 2016. The current ratio (current assets divided by current liabilities) increased from 1.37 at the end of 2016 to 3.81 at the end of 2017. Total shareholders equity increased from $16.2 million at December 31, 2016 to $17.2 million at December 31, 2017. The increase in net equity included the conversion of $1.2 million of subordinated convertible notes and accrued interest into equity in September 2017.
Fourth Quarter Results
Revenue for the fourth quarter of 2017 was $4.4 million, with gross margins of 53 percent, operating expenses of $2.3 million, and net income before income taxes of $68,000. Cordless barcode
scanning revenue in 2017 was $4.2 million, almost all relating to small unit sales. Revenue in the fourth quarter of 2016 was $5.4 million. Cordless barcode scanning revenue in the fourth quarter of 2016 was $5.2 million and included $1.0 million in revenue from corporate deployments.... click here for the full release
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