SOCKET MOBILE, INC. Q1 FY2025 earnings call

• Revenue for Q1 was $4 million, down 20% from Q1 2024; margins 50.4%, slightly down from 51% in Q1 2024; operating loss $900,000 vs $500,000 in Q1 2024. Q1 was a difficult start with weakness in domestic and international businesses due to uncertainty freezing deployments. - Positive news: first green shoots in industrial business. - Dave Holmes highlighted investments in industrial scanning and handheld computing over 2 years bearing fruit in 2025, interest from various industrial customers, purchase orders from a Fortune 50 Tier 1 industrial customer, launch of Xtreme iXG and iXS Series powered by iOS with iPhone 16e, XtremeScan product configurations for iPhone, and AI-powered developer support assistant Alfred helping developers. - Lynn Zhao provided financial details: revenue decrease, gross margin details, operating expenses, operating loss, adjusted EBITDA loss, diluted loss per share, balance sheet info including cash balance, cash outflows, inventory level, and renewed $3 million domestic bank credit line.

Revenue for Q1 was $4 million, a decrease of 20% over Q1 2024. Margins were 50.4%, a slight decrease from 51% in Q1 2024. Operating loss was $900,000 compared to $500,000 in Q1 2024. Revenue in Q1 decreased 20% year-over-year to $4 million from $5 million in the prior year quarter and decreased 18% sequentially from $4.8 million in Q4 2024. Gross margin for Q1 was 50.4% compared to 50.3% in Q1 2024 and 51% in Q4 2024. Operating expenses for Q1 were $2.9 million compared to $3 million year-over-year and $2.9 million in the preceding quarter. Q1 adjusted EBITDA loss was $485,000 compared to a positive EBITDA of $40,000 in Q1 2024 and $140,000 in Q4 2024. Diluted loss per share in Q1 was $0.13 compared to $0.07 in Q1 2024.

• Believe will be able to continue to invest in business and achieve positive EBITDA results for Q2, and achieve profitable operating levels for the second half of the year. - Tariff situation complicates supply chain; source 30% from Mexico, 20% from Taiwan, 10% from China, 40% in US; working with customers to minimize impact; retail expected to remain at current levels until more certainty; near-term industrial business mostly in US and less likely impacted by tariffs.

• Risk that manufacturer of Socket’s products may be delayed or not rolled out as predicted due to technological, market, or financial factors, including availability of product components and necessary working capital. - Risk that market acceptance and sales opportunities may not happen as anticipated. - Risk that Socket’s application partners and current distribution channels may choose not to distribute the products or may not be successful in doing so. - Risk that acceptance of Socket’s products in vertical application markets may not happen as anticipated. - Tariffs impact the supply chain.

Q: [Operator Instructions] A: And it appears we have no questions at this time. I will turn the call back over to your host for any closing remarks.

Q: A: Thank you, operator. So, thank you for participating in today’s call and I wish you all a good afternoon. Thank you and goodbye.

Q: A: This concludes today’s conference call. Thank you for attending.