Socket Mobile shares price surged over 200% on Friday after the company reported a profit of $0.07 per share from the prior year period.
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Shares of Socket Mobile, Inc. (SCKT) on Friday made a massive move on the company reporting the third quarter financial results. After having a tough phase during the COVID-19 pandemic, Socket Mobile have seemed to find a way out to keep its business rolling.
Socket Mobile stock traded as high as $4.50 up by 200% during the trading session on Friday. The stock kept on trading up 100% most of the day before it closed the week soaring 74.66%. SCKT Stock closed at $2.55 compared to the previous close of $1.46.
The trading volume of Socket Mobile skyrocketed above 170 million, just behind Snap, Inc. (SNAP) making it the second-most actively traded stock in the market. SCKT was well above the full-day average of about 308,000 shares.
The company warned that the third quarter results were not complete and subject to goodwill impairment. The review of the quarterly report has taken longer than usual due to the pandemic uncertainties and barriers. The company highlighted that the results will be reported as soon as the goodwill review is completed.
The initial third quarter report stated:
“Socket Mobile 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 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 Q3 profit rose to $424,000 or $0.07 per share compared to $94,000 in the same period last year. The company required during Q3 after it faced a net loss of $768,000 in the last quarter.
Revenue dropped 17% to $4.1 million from the same quarter last year, but it soared 51% from the prior quarter revenue of $2.7 million. The gross margin on revenue for Q3 was 55.3% compared to 52.9% for the Q3 of 2019.
The fact that the major reason why Socket Mobile, Inc. (SCKT) stock was trading higher on Friday was due to the third quarter results, but there is one other factor to look for. During this pandemic crisis, the company has focused to attract restaurants and hospitals by selling them its barcode and RFID scanners.
Socket Mobile presents itself as a provider of data capture and delivery solutions for productivity in the workforce. The focus of the company remains on selling series of its barcode and RFID scanners and recently, it has created a real opportunity to enhance its growth by selling its barcode and RFID scanners to restaurants and hospitals.
However, we can not be that much conclusive about Socket Mobile, Inc. (SCKT) unless the company reveals its future objects and complete Q3 results.
