Socket Mobile, Inc. (NASDAQ: SCKT) stock skyrockets more than 135% after the data capture and delivery solutions provider reported their third quarter 2020 results.
Revenue for the third quarter of 2020 was $4.1 million, a decrease of 17 percent over revenue of $5.0 million for the same quarter a year ago and an increase of 51 percent sequentially from revenue of $2.7 million in the immediately preceding quarter. Net income for the third quarter of 2020 was $424,000, or $0.07 per share, compared to net income of $94,000 in the third quarter of 2019, and net loss of $768,000 in the immediately preceding quarter.
“We were pleased to report revenue growth in Q3. We believe our Q3 results demonstrated our ability to adjust quickly to the extreme economic challenges posed by the COVID-19 pandemic and resulting uncertainties. We offset our lower revenues by proactive cost reductions, delays in non-critical discretionary spending and capital expenditures while maintaining critical longer-term projects. We also developed and implemented strategies to strengthen our balance sheet, including raising additional capital through debt financing. These actions allowed us to navigate the last two quarters well – returning to profitability in Q3, after experiencing abrupt and dramatic declines in economic and business activity in Q2,” said Kevin Mills, president and chief executive officer.
Socket Mobile did clarify that the company and its auditors did not complete the annual review process related to goodwill impairment, which is part of the quarter-end closing procedures, in time to include in this release. The review takes longer than usual due to uncertainties and complications associated with the impact of the COVID-19 pandemic. The results that are being released today assume there is no goodwill impairment. All numbers that would be negatively impacted by an adjustment to goodwill are asterisked. The results will be reported as soon as the goodwill review is completed or in the Form 10-Q for Q3.