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<SEC-DOCUMENT>0000944075-06-000042.txt : 20060426
<SEC-HEADER>0000944075-06-000042.hdr.sgml : 20060426
<ACCEPTANCE-DATETIME>20060426161332
ACCESSION NUMBER:		0000944075-06-000042
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060331
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060426
DATE AS OF CHANGE:		20060426

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOCKET COMMUNICATIONS INC
		CENTRAL INDEX KEY:			0000944075
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPUTERS [3571]
		IRS NUMBER:				943155066
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13810
		FILM NUMBER:		06781317

	BUSINESS ADDRESS:	
		STREET 1:		37400 CENTRAL COURT
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560
		BUSINESS PHONE:		5107442700

	MAIL ADDRESS:	
		STREET 1:		37400 CENTRAL COURT
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form-8k0426.htm
<TEXT>
<html>
<head>

</head>

<body bgcolor="#FFFFFF">
<div align=left>
  <hr>
  <div align=center><font face="Times New Roman, Times, serif" size=3><b><font
size=4>UNITED STATES<br>
    </font></b></font><font
face="Times New Roman, Times, serif" size=4><strong>SECURITIES AND EXCHANGE COMMISSION</strong></font></div>
</div>
<p align=center><font face="Times New Roman, Times, serif" size=3>Washington,
  D.C. 20549<br>
  <br>
  <br>
  <b>FORM 8-K</b><br>
  <br>
  <br>
  </font><font
face="Times New Roman, Times, serif" size=3><b>CURRENT REPORT</b><br>
  </font></p>
<p align=center><font face="Times New Roman, Times, serif" size=3>Pursuant to
  Section 13 or 15(d) of </font><font face="Times New Roman, Times, serif"
size=3>the Securities Exchange Act of 1934<br>
  <b><br>
  </b></font></p>
<p align=center><font face="Times New Roman, Times, serif" size=3><b>April 26</b></font><b><font face="Times New Roman, Times, serif" size=3>,
  2006</font></b><font face="Times New Roman, Times, serif" size=3><br>
  Date of Report <br>
  <font size="2">(date of earliest event reported)</font></font></p>
<p align=center><font face="Times New Roman, Times, serif"
size=3><br>
  </font></p>
<p align=center><font face="Times New Roman, Times, serif" size=5><strong><font
size=4>SOCKET COMMUNICATIONS, INC. </font></strong></font><font
face="Times New Roman, Times, serif"><br>
  <font size=2>(Exact name of Registrant as specified in its charter) </font></font></p>
<p>&nbsp;
<table cols=3 width="100%">
  <tr>
    <td height=30 width="34%">
      <center>
        <font face="Times New Roman, Times, serif" size=3>Delaware </font>
      </center>
    </td>
    <td height=30 width="32%">
      <center>
        <font face="Times New Roman, Times, serif" size=3>001-13810 </font>
      </center>
    </td>
    <td height=30 width="34%">
      <center>
        <font face="Times New Roman, Times, serif" size=3>94-3155066 </font>
      </center>
    </td>
  </tr>
  <tr>
    <td width="34%">
      <center>
        <font face="Times New Roman, Times, serif" size=2>(State or other jurisdiction
        of incorporation) </font>
      </center>
    </td>
    <td width="32%">
      <center>
        <font face="Times New Roman, Times, serif" size=2>(Commission File Number)
        </font>
      </center>
    </td>
    <td width="34%">
      <center>
        <font face="Times New Roman, Times, serif" size=2>(IRS employer identification
        number) </font>
      </center>
    </td>
  </tr>
</table>
<font
face="Times New Roman, Times, serif"><br>
</font>
<p align=center><font face="Times New Roman, Times, serif" size=3>37400 Central
  Court<br>
  Newark, CA 94560</font><font
face="Times New Roman, Times, serif"><br>
  <font size=2>(Address of principal executive offices, including zip code) </font></font></p>
<p align=center><font face="Times New Roman, Times, serif" size=3>(510) 744-2700
  </font><font face="Times New Roman, Times, serif"><br>
  <font size=2>(Registrant's telephone number, including area code) <br>
  <br>
  <br>
  </font></font></p>
<div align=left></div>
<div align=left>
  <hr>
</div>
<br>
<p><font face="Times New Roman, Times, serif"><b>ITEM 2.02. RESULTS OF OPERATIONS
  AND FINANCIAL CONDITION</b><br>
  </font></p>
<p><font face="Times New Roman, Times, serif" size="3">On April 26, 2006, Socket
  Communications, Inc. issued a press release reporting its results for the three
  months ended March 31, 2006. A copy of the press release is furnished as Exhibit
  99.1.</font><font
face="Times New Roman, Times, serif"><br>
  </font></p>
<p><font face="Times New Roman, Times, serif"><b>ITEM 9.01. FINANCIAL STATEMENTS
  AND EXHIBITS</b><br>
  </font></p>
<p><font face="Times New Roman, Times, serif">(c) Exhibits.</font><font
face="Times New Roman, Times, serif"></font><font
face="Times New Roman, Times, serif"></font></p>
<p>&nbsp;</p>
<table cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td width=215 height=54>
      <div align=center><font face="Times New Roman, Times, serif">Exhibit Number</font></div>
    </td>
    <td width=29 height=54>&nbsp;</td>
    <td width=680 height=54>
      <div align=center><font
      face="Times New Roman, Times, serif">Description</font></div>
    </td>
  </tr>
  <tr valign=top>
    <td valign=top align=middle width=215>----------------------------</td>
    <td width=29>&nbsp;</td>
    <td width=680>
      <div
      align=center>---------------------------------------------------------------------------------------------</div>
    </td>
  </tr>
  <tr valign=top>
    <td width=215>
      <div align=center><font
      face="Times New Roman, Times, serif">99.1</font></div>
    </td>
    <td width=29>&nbsp;</td>
    <td width=680><font face="Times New Roman, Times, serif" size="3">Text of
      press release, dated April 26, 2006, titled "Socket Communications Reports
      First Quarter Revenue of $6.8 million".</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif" size=3><br>
  </font></p>
<p><font face="Times New Roman, Times, serif" size=3><br>
  </font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p> </p>
<hr>
<p align=center><font
face="Times New Roman, Times, serif"><b>SIGNATURE</b><br>
  </font></p>
<p><font face="Times New Roman, Times, serif">Pursuant to the requirements of
  the Securities Exchange Act of 1934, the registrant has duly caused this report
  to be signed on its behalf by the undersigned hereunto duly authorized.</font><font face="Times New Roman, Times, serif"
size=3><br>
  </font></p>
<dir>
  <dir>
    <dir>
      <dir>
        <dir>
          <blockquote>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <p align=left> </p>
            <tr valign="bottom"
align="left"></tr>
          </blockquote>
        </dir>
      </dir>
    </dir>
  </dir>
</dir>
<div align=left>
  <table height=135 cellspacing=0 cellpadding=0 width=847 align=left border=0>
    <tr>
      <td width=470>
        <div align=left></div>
      </td>
      <td width=23>&nbsp;</td>
      <td width=348><font face="Times New Roman, Times, serif"><b>SOCKET COMMUNICATIONS,
        INC.</b></font></td>
    </tr>
    <tr>
      <td width=470>&nbsp;</td>
      <td width=23>&nbsp;</td>
      <td width=348><font face="Times New Roman, Times, serif">(Registrant)</font></td>
    </tr>
    <tr>
      <td width=470>&nbsp;</td>
      <td width=23>&nbsp;</td>
      <td width=348>&nbsp;</td>
    </tr>
    <tr>
      <td width=470>
        <div align=left></div>
      </td>
      <td width=23>&nbsp;</td>
      <td width=348>&nbsp;</td>
    </tr>
    <tr>
      <td width=470 height=19>
        <div align=left><font face="Times New Roman, Times, serif">Date: April
          26, 2006</font></div>
      </td>
      <td width=23 height=19><font
      face="Times New Roman, Times, serif">By:</font></td>
      <td width=348 height=19><font face="Times New Roman, Times, serif"><u>/s/
        David W. Dunlap</u></font></td>
    </tr>
    <tr>
      <td width=470 height=69>
        <div align=left></div>
      </td>
      <td width=23 height=69>&nbsp;</td>
      <td width=348 height=69><font face="Times New Roman, Times, serif">David
        W. Dunlap<br>
        Vice President, Finance and Administration <br>
        and Chief Financial Officer<br>
        </font></td>
    </tr>
  </table>
</div>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p align=center><font face="Times New Roman, Times, serif"><b>EXHIBIT INDEX</b></font></p>
<p align=center>&nbsp;</p>
<table cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td width=215 height=54>
      <div align=center><font face="Times New Roman, Times, serif">Exhibit Number</font></div>
    </td>
    <td width=29 height=54>&nbsp;</td>
    <td width=680 height=54>
      <div align=center><font
      face="Times New Roman, Times, serif">Description</font></div>
    </td>
  </tr>
  <tr valign=top>
    <td valign=top align=middle width=215>----------------------------</td>
    <td width=29>&nbsp;</td>
    <td width=680>
      <div
      align=center>---------------------------------------------------------------------------------------------</div>
    </td>
  </tr>
  <tr valign=top>
    <td width=215>
      <div align=center><font
      face="Times New Roman, Times, serif">99.1</font></div>
    </td>
    <td width=29>&nbsp;</td>
    <td width=680><font face="Times New Roman, Times, serif" size="3">Text of
      press release, dated April 26, 2006, titled "Socket Communications Reports
      First Quarter Revenue of $6.8 million".</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p align=center>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p>&nbsp;</p>
<div align=left>
  <div align=left></div>
</div>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1 CHARTER
<SEQUENCE>2
<FILENAME>pressrelease.htm
<TEXT>
<html>
<head>


</head>

<body bgcolor="#FFFFFF">
<p align="right"><b><font size="3">Exhibit 99.1</font></b></p>
<p><font size="3" face="Times New Roman, Times, serif"><b><font size="4">For Immediate
  Release</font></b> </font> </p>
<p><font face="Times New Roman, Times, serif" size="3"><b>For further information,
  contact:</b><br>
  </font></p>
<table width="108%" border="0" cellspacing="0" cellpadding="0" align="left">
  <tr valign="bottom">
    <td width="456" height="25"><font face="Times New Roman, Times, serif" size="3"><b><u>Socket
      Communications Contact:</u></b></font></td>
    <td width="228" height="25"><font face="Times New Roman, Times, serif" size="3"><b><u>Investor
      Relations Contact:</u></b></font></td>
  </tr>
  <tr valign="bottom">
    <td width="456" height="25"><font face="Times New Roman, Times, serif" size="3">David
      Dunlap</font></td>
    <td width="228" height="25"><font face="Times New Roman, Times, serif" size="3">Todd
      Kehrli or Jim Byers</font></td>
  </tr>
  <tr valign="bottom">
    <td width="456" height="20"><font face="Times New Roman, Times, serif" size="3">Chief
      Financial Officer</font></td>
    <td width="228" height="20"><font face="Times New Roman, Times, serif" size="3">MKR
      Group, LLC</font></td>
  </tr>
  <tr valign="bottom">
    <td width="456" height="20"><font face="Times New Roman, Times, serif" size="3">510/744-2735</font></td>
    <td width="228" height="20"><font face="Times New Roman, Times, serif" size="3">818/556-3700</font></td>
  </tr>
  <tr valign="bottom">
    <td width="456" height="20">dave@socketcom.com</td>
    <td width="228" height="20">ir@mkr-group.com</td>
  </tr>
</table>
<p><font face="Times New Roman, Times, serif" size="3"> </font></p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<div align="center">
  <p>&nbsp;</p>
  <p><font size="3" face="Times New Roman, Times, serif"><font size="6"><b><font size="5">Socket
    Communications Reports First Quarter Revenue of $6.8 million</font></b><br>
    </font><b><i> <font size="4">Revenues up 14 Percent Sequentially<br>
    <br>
    </font></i></b></font></p>
</div>
<p><font size="3" face="Times New Roman, Times, serif"><b>NEWARK, Calif. - April
  26, 2006</b> - Socket Communications, Inc. (NASDAQ: SCKT), an innovative provider
  of mobile productivity products, today reported record revenue of $6.8 million
  for the first quarter ended March 31, 2006, up 13 percent over first quarter
  2005 revenue of $6.0 million and a 14 percent increase over revenue of $5.9
  million for the previous quarter.</font></p>
<p>Net loss applicable to common stockholders for the first quarter was $0.4 million,
  or $0.01 per share, compared to a net loss of $0.4 million, or $0.01 per share,
  in the first quarter of 2005. The net loss in the first quarter of 2006 includes
  expense of $0.3 million, or $0.01 per share, from the expensing of stock options
  required by Financial Accounting Standard 123(R).</p>
<p>The balance sheet at March 31, 2006 included a 10 percent increase in cash
  and cash equivalents to $7.5 million compared to the previous year-end, and
  no long-term debt.</p>
<p>"We are pleased with the positive growth momentum generated in the first quarter,
  which reflects higher sales across our broad family of bar code scanning products
  and increases in OEM sales of industrialized ruggedized handheld devices that
  embed Socket Bluetooth modules," said Kevin Mills, president and CEO of Socket
  Communications. "While some of our customers continue to experience delays from
  Pocket PC transitions to the new Microsoft Windows Mobile 5.0 operating system
  upgrade, our outlook remains positive as more and more enterprises are using
  mobile devices to improve productivity. We believe these transitional issues
  are nearing completion but will continue to impact enterprise deployments and
  our sales growth during the second quarter."</p>
<p>"During the quarter, we continued to grow our base of Strategic Vertical Integrators
  and are actively supporting them as they integrate our products into their mobile
  enterprise solutions. Our recently announced new bar code scanning product,
  the Cordless Ring Scanner, is now shipping, and our CompactFlash Wireless LAN
  802.11g card will begin shipping within the next few weeks. With these new product
  introductions and the numerous mobile device applications under development,
  we believe we are well positioned to exercise opportunities for growth as we
  see stability return to our markets," Mills said.</p>
<p><font size="3" face="Times New Roman, Times, serif"><b>Quarterly Management
  Conference Call</b><br>
  Management of Socket will hold a conference call today at 2 p.m. Pacific Daylight
  Time to discuss the quarterly results and outlook for the future. The call will
  be carried live and available via replay. Participants may join the call by
  telephone at (877) 407-8033 or (201) 689-8033, or hear a replay via telephone
  at (877) 660-6853 or (201) 612-7415, using account number 286# followed by access
  code 199172# for a week following the call. The call will also be broadcasted
  over the Internet on VCall.com and may be accessed through the Company's website
  at http://www.mkr-group.com/SCKT/conference.html.</font></p>
<p><font size="3" face="Times New Roman, Times, serif"> <b>About Socket Communications</b><br>
  Socket Communications (NASDAQ: SCKT) develops and distributes a broad range
  of data collection and network connectivity products for mobile devices such
  as PDAs, Smartphones and tablet PCs. Working collaboratively with mobile solutions
  from leading Strategic Vertical Integrators, world-class third party software
  developers and OEMs, Socket Mobility Friendly&reg; products drive operational
  efficiencies, increase mobile workforce productivity, boost corporate performance
  and improve customer satisfaction. Socket is headquartered in Newark, California
  and can be reached at 510-744-2700 or http://www.socketcom.com/.</font></p>
<p><font size="3" face="Times New Roman, Times, serif"><b>Forward Looking Statements</b><br>
  This press release contains forward looking statements within the meaning of
  Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
  Securities Exchange Act of 1934, as amended. Such forward looking statements
  include, but are not limited to, statements indicating a positive outlook for
  our business, statements predicting trends and opportunities in the markets
  in which we sell our products, including the anticipated completion of the market
  transition to the Windows Mobile 5.0 operating system, and other market opportunities
  and trends tied to the introduction of third-party products such as the Windows
  Mobile 5.0 operating system and mobile handheld devices, and statements forecasting
  market acceptance of and demand for our products. Such statements involve risks
  and uncertainties, and actual results could differ materially from the results
  anticipated in such forward looking statements as a result of a number of factors,
  including, but not limited to, the risk that market trends and opportunities,
  such as the anticipated completion of the market transition to the Windows Mobile
  5.0 operating system, may not materialize as quickly or as robustly as we anticipate,
  if at all, the risk of delays in our ability to design, manufacture and market
  new products due to technological, market, or financial factors, including the
  availability of necessary working capital, and risks related to our ability
  to successfully introduce and market future products, our ability to effectively
  manage and contain our operating costs, the availability of announced handheld
  computer hardware and software, product delays associated with new model introductions
  and product changeovers, continued growth in demand for handheld computers,
  market acceptance of emerging standards such as Bluetooth and Wireless LAN and
  of our related connection and data collection products, the ability of our strategic
  partnerships to benefit our business as expected, our ability to enter into
  additional distribution relationships, or the other factors described in our
  most recent Form 10-K and 10-Q reports filed with the Securities and Exchange
  Commission.</font></p>
<p><font size="1"><i>Socket and Battery Friendly are registered trademarks of
  Socket Communications, Inc. The Mobile Connection Company, Increasing Mobile
  Productivity, Mobility Friendly, ScanSource, and KwikBlue are trademarks of
  Socket Communications, Inc. The Bluetooth word mark and logos are owned by the
  Bluetooth SIG, Inc. and any use of such marks by Socket Communications, Inc.
  is under license. Wi-Fi&reg; is a registered trademark of the Wi-Fi Alliance.
  All other trademarks and trade names contained herein may be those of their
  respective owners. &copy;2006, Socket Communications, Inc. All rights reserved.
  </i></font></p>
<p align="center"><font size="3" face="Times New Roman, Times, serif"><br>
  - Financial tables to follow -</font></p>
<p> </p>
<hr>
<p align="center"><font size="3" face="Times New Roman, Times, serif"></font></p>
<p>&nbsp;</p>
<table cellspacing=1 cellpadding=1 width=688 align=center border=1>
  <tr valign=bottom>
    <td colspan=3 height=70>
      <p align=center><font size="3" face="Times New Roman, Times, serif"><b>Socket
        Communications, Inc.<br>
        Summary Consolidated Statements of Operations (Unaudited)<br>
        (Amounts in Thousands except per share amounts)</b></font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>&nbsp;&nbsp; </font></p>
    </td>
    <td colspan=2 height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>Three
        Months Ended March 31,</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>&nbsp;&nbsp; </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3><u>2006</u> </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3><u>2005</u> </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Revenue </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3> $ 6,759
        </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3> $ 5,982
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Cost of revenue </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3> 3,385 </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3> 2,934 </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Gross profit</font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,374 </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,048 </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <blockquote>
        <p><font face="Times New Roman, Times, serif" size=3>Gross profit percent</font></p>
      </blockquote>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>50% </font> </p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>51% </font> </p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Research &amp; development
        </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>1,137 </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>889 </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Sales &amp; marketing
        </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>1,762 </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>1,635 </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>General &amp; administrative
        </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>842 </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>833 </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17><font face="Times New Roman, Times, serif"
      size=3>Amortization of intangibles</font></td>
    <td width="25%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>36 </font></div>
    </td>
    <td width="25%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>95 </font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=18>
      <div align="left"><font face="Times New Roman, Times, serif" size=3> </font>
        <font face="Times New Roman, Times, serif"
      size=2>&nbsp;&nbsp;&nbsp; </font> <font face="Times New Roman, Times, serif" size=3>Total
        operating expenses</font></div>
    </td>
    <td width="25%" height=18>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,777 </font></p>
    </td>
    <td width="25%" height=18>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,452 </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17><font face="Times New Roman, Times, serif"
      size=3>Interest (income) expense, net</font></td>
    <td width="25%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>(34) </font></div>
    </td>
    <td width="25%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>(12) </font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Net (loss) income</font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>(369)
        </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>(392)
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=29>
      <p>Preferred stock dividends</p>
    </td>
    <td width="25%" height=29>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>(11) </font></p>
    </td>
    <td width="25%" height=29>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>(12) </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=14>
      <p><font face="Times New Roman, Times, serif" size=3>Net (loss) income applicable
        to common stockholders</font> </p>
    </td>
    <td width="25%" height=14>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (380)
        </font></p>
    </td>
    <td width="25%" height=14>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (404)
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td valign=top width="51%" height=48>
      <p><font face="Times New Roman, Times, serif" size=3>Net income (loss) applicable
        to common stockholders per share:<br>
        Basic and diluted </font></p>
    </td>
    <td width="25%" height=48>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (0.01)
        </font></p>
    </td>
    <td width="25%" height=48>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (0.01)
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=13>
      <p><font face="Times New Roman, Times, serif" size=3>Weighted average shares
        outstanding</font>: <br>
        Basic and diluted</p>
    </td>
    <td width="25%" height=13>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>30,395</font></p>
    </td>
    <td width="25%" height=13>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>30,155</font></p>
    </td>
  </tr>
</table>
<br>
<br>
<br>
<br>
<hr>
<br>
<br>
<br>
<br>
<br>
<table cellspacing=1 cellpadding=1 width=674 align=center border=1>
  <tr valign=bottom>
    <td colspan=3 height="67">
      <p align="center"><b><font size="3" face="Times New Roman, Times, serif">Socket
        Communications, Inc.<br>
        Condensed Consolidated Summary Balance Sheets<br>
        (Amounts in Thousands)</font></b></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td height=26 width="44%">&nbsp;</td>
    <td height=26>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">March
        31, 2006<br>
        (Unaudited) </font></div>
    </td>
    <td height=26>
      <div align="center">December 31, 2005*<br>
      </div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Cash</font> </p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 7,486
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 6,833
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Accounts receivable
        </font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>3,603
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>2,953
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Inventories </font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>2,294
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>2,195 </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Other current assets</font>
      </p>
    </td>
    <td width="29%">
      <p align=center>268 </p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>315 </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Property and equipment,
        net </font></p>
    </td>
    <td width="29%">
      <div align=center>767 </div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>628 </font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Goodwill </font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>9,798
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>9,798
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Intangible technology</font>
      </p>
    </td>
    <td width="29%">
      <p align=center>713 </p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>749 </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Other assets</font>
      </p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>154 </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>164 </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Total assets </font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 25,083
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 23,635
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td colspan=3><font face="Times New Roman, Times, serif"
      size=3>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Accounts payable and
        accrued liabilities</font> </p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 4,212
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 3,346
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Bank line of credit</font>
      </p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>2,747
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>2,309
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Deferred income on
        shipments to distributors</font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>955 </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>1,114
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%"><font face="Times New Roman, Times, serif" size=3>Capital
      leases/other non-current liabilities</font></td>
    <td width="29%">
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>40 </font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>51 </font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Common and convertible
        preferred stock**</font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>51,398
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>50,704
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Accumulated deficit</font>
      </p>
    </td>
    <td width="29%">
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>(34,269) </font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>(33,889) </font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%"><font face="Times New Roman, Times, serif" size=3>Total liabilities
      and equity</font></td>
    <td width="29%">
      <div align=center><font face="Times New Roman, Times, serif" size=3>$ 25,083
        </font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size=3>$ 23,635
        </font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td colspan=3><font face="Times New Roman, Times, serif" size=3>*Derived from
      audited financial statements.</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=3>
      <p><font face="Times New Roman, Times, serif" size=3>**Remaining Series
        F Preferred stock converted to common stock on March 21, 2006 </font></p>
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<p></p>
<p></p>
<p></p>
<p></p>
<p></p>
<p align="center"><font size="3" face="Times New Roman, Times, serif"># # #</font></p>
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