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<SEC-DOCUMENT>0000944075-07-000026.txt : 20070425
<SEC-HEADER>0000944075-07-000026.hdr.sgml : 20070425
<ACCEPTANCE-DATETIME>20070425160639
ACCESSION NUMBER:		0000944075-07-000026
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070331
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070425
DATE AS OF CHANGE:		20070425

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:		07787772

	BUSINESS ADDRESS:	
		STREET 1:		39700 EUREKA DRIVE
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560-4808
		BUSINESS PHONE:		5109333000

	MAIL ADDRESS:	
		STREET 1:		39700 EUREKA DRIVE
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560-4808
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form-8k0425.htm
<TEXT>
<html>
<head>

</head>

<body bgcolor="#FFFFFF">
<div align=left>
  <hr width="100%">
  <div align=center>
    <hr width="100%">
    <p><font face="Times New Roman, Times, serif" size=3><b><font size="5">UNITED
      STATES<br>
      </font></b><font size="5"><strong>SECURITIES AND EXCHANGE COMMISSION</strong></font></font></p>
    </div>
</div>
<p align=center><font face="Times New Roman, Times, serif" size=3>Washington,
  DC 20549</font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3">__________________________</font></p>
<p align=center><font face="Times New Roman, Times, serif" size=3> <b><font size="5">FORM
  8-K</font></b><br>
  <br>
  </font><font
face="Times New Roman, Times, serif" size=3><b>CURRENT REPORT</b><br>
  <br>
  Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934</font><font face="Times New Roman, Times, serif"
size=3><br>
  <b><br>
  </b></font></p>
<p align=center><font face="Times New Roman, Times, serif" size=3><b>April 25</b></font><b><font face="Times New Roman, Times, serif" size=3>,
  2007</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>SOCKET
  COMMUNICATIONS, INC.</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=28 width="34%">
      <center>
        <font face="Times New Roman, Times, serif" size=3><b>Delaware<br>
        </b></font><font face="Times New Roman, Times, serif" size=2>(State or
        other jurisdiction of incorporation)</font><font face="Times New Roman, Times, serif" size=3><b>
        </b> </font>
      </center>
    </td>
    <td height=28 width="32%">
      <center>
        <font face="Times New Roman, Times, serif" size=3><b>001-13810<br>
        </b></font><font face="Times New Roman, Times, serif" size=2>(Commission
        File Number)</font><font face="Times New Roman, Times, serif" size=3><b>
        </b></font>
      </center>
    </td>
    <td height=28 width="34%">
      <center>
        <font face="Times New Roman, Times, serif" size=3><b>94-3155066</b><br>
        </font><font face="Times New Roman, Times, serif" size=2>(IRS Employer
        Identification No.)</font><font face="Times New Roman, Times, serif" size=3>
        </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><b>39700 Eureka
  Drive <br>
  Newark, CA 94560</b></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><b>(510) 933-3000<br>
  </b></font> <font face="Times New Roman, Times, serif"><font size="2">(Registrant's
  telephone number, including area code)</font></font>
<div align="center">
<p>&nbsp;</p>
  <p align="left">Check the appropriate box below if the Form 8-K filing is intended
    to simultaneously satisfy the filing obligation of the registrant under any
    of the following provisions (see General Instruction A.2. below):</p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Written communications pursuant to Rule 425 under the Securities Act (17
    CFR 230.425)</font></font></p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
    240.14a-12)</font></font></p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b))</font></font></p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))<br>
    <br>
    </font></font></p>
</div>
<p style="PAGE-BREAK-BEFORE: always"> </p>
<div align=left></div>
<div align=left>
  <hr width="100%">
</div>
<p>&nbsp;</p>
<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 25, 2007, Socket
  Communications, Inc., dba Socket Mobile, Inc., issued a press release reporting
  its results for the three months ended March 31, 2007. 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">(d) Exhibits.</font><font
face="Times New Roman, Times, serif"></font></p>
<table cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td align="left" height="54" width="215" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div align="center" class="border">Exhibit Number</div>
      </div>
    </td>
    <td width=29 height=54>&nbsp;</td>
    <td align="left" height="54" width="680" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div class="border">
          <div align="center">Description</div>
        </div>
      </div>
    </td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">&nbsp;</td>
    <td width=29 height="22">&nbsp;</td>
    <td width=680 height="22">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">
      <div align=center><font
      face="Times New Roman, Times, serif">99.1</font></div>
    </td>
    <td width=29 height="22">&nbsp;</td>
    <td width=680 height="22"><font face="Times New Roman, Times, serif">Text
      of press release, dated April 25, 2007, titled "</font>Socket Mobile Reports
      2007 First Quarter Financial Results&quot;.</td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p style="PAGE-BREAK-BEFORE: always">
<p style="PAGE-BREAK-BEFORE: always">
<p>&nbsp;</p>
<hr width="100%">
<p align="center">&nbsp;</p>
<p align="center"><font
face="Times New Roman, Times, serif"><b>SIGNATURES</b><br>
  </font></p>
<p>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.</p>
<p>&nbsp;</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=96% align=left border=0>
    <tr>
      <td width=300>&nbsp;</td>
      <td width=21>&nbsp;</td>
      <td colspan="2"><font face="Times New Roman, Times, serif"><b>SOCKET COMMUNICATIONS,
        INC.</b></font></td>
    </tr>
    <tr>
      <td width=300>&nbsp;</td>
      <td width=21>&nbsp;</td>
      <td colspan="2">&nbsp;</td>
    </tr>
    <tr>
      <td width=300>
        <div align=left></div>
      </td>
      <td width=21>&nbsp;</td>
      <td colspan="2">&nbsp;</td>
    </tr>
    <tr>
      <td width=300 height=19>
        <div align=left><font face="Times New Roman, Times, serif">Date: April
          25, 2007</font></div>
      </td>
      <td width=21 height=19>&nbsp;</td>
      <td width=30 height=19><font face="Times New Roman, Times, serif">By: <u>/s/
        </u></font></td>
      <td width=379 height=19><font face="Times New Roman, Times, serif"><u>David
        W. Dunlap</u></font></td>
    </tr>
    <tr>
      <td width=300 height=40>
        <div align=left></div>
      </td>
      <td width=21 height=40>&nbsp;</td>
      <td width=30 height=40>
        <blockquote>
          <div align="left"></div>
        </blockquote>
      </td>
      <td width=379 height=40><font face="Times New Roman, Times, serif">Name:
        David W. Dunlap<br>
        Vice President, Finance and Administration <br>
        and Chief Financial Officer</font></td>
    </tr>
  </table>
</div>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p align=center>&nbsp;</p>
<p align=center><font face="Times New Roman, Times, serif"><b>EXHIBIT INDEX</b></font></p>
<table cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td align="left" height="54" width="215" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div align="center" class="border">Exhibit Number</div>
      </div>
    </td>
    <td width=29 height=54>&nbsp;</td>
    <td align="left" height="54" width="680" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div class="border">
          <div align="center">Description</div>
        </div>
      </div>
    </td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">&nbsp;</td>
    <td width=29 height="22">&nbsp;</td>
    <td width=680 height="22">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">
      <div align=center><font
      face="Times New Roman, Times, serif">99.1</font></div>
    </td>
    <td width=29 height="22">&nbsp;</td>
    <td width=680 height="22"><font face="Times New Roman, Times, serif">Text
      of press release, dated April 25, 2007, titled "</font>Socket Mobile Reports
      2007 First Quarter Financial Results&quot;.</td>
  </tr>
</table>
<p>&nbsp;</p>
<p align=center>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>pressrelease.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<html>
<head>
<title>Untitled Document</title>

</head>

<body bgcolor="#FFFFFF">
<p align="right"><font face="Times New Roman, Times, serif" size="3"><b>Exhibit
  99.1</b></font></p>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0" align="left">
  <tr valign="bottom">
    <td width="362" height="12"><font face="Times New Roman, Times, serif" size="3"><b><u>Socket
      Mobile Contacts:</u></b></font></td>
    <td width="481" height="12">&nbsp;</td>
    <td width="362" height="12"><font face="Times New Roman, Times, serif" size="3"><b><u>Editorial
      Contact:</u></b></font></td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="10"><font face="Times New Roman, Times, serif" size="3">Carol
      Montalvo </font></td>
    <td width="481" height="10"><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp</font></td>
    <td width="362" height="10">Ed Schauweker</td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="7"><font face="Times New Roman, Times, serif" size="3">Sr.
      Marketing Communications Manager</font></td>
    <td width="481" height="7"><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp</font></td>
    <td width="362" height="7"><font face="Times New Roman, Times, serif" size="3">Ketchum</font></td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="20"><font face="Times New Roman, Times, serif" size="3">510/933-3051</font></td>
    <td width="481" height="20"><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp</font></td>
    <td width="362" height="20"><font face="Times New Roman, Times, serif" size="3">703/963-5238
      </font></td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="20">carol@socketmobile.com</td>
    <td width="481" height="20">&nbsp;</td>
    <td width="362" height="20">ed.schauweker@ketchum.com</td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="20">&nbsp;</td>
    <td width="481" height="20">&nbsp;</td>
    <td width="362" height="20">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="3"><font face="Times New Roman, Times, serif" size="3"><b><u>Investor
      Relations Contacts:</u></b></font></td>
    <td width="481" height="3">&nbsp;</td>
    <td width="362" height="3">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="9"><font face="Times New Roman, Times, serif" size="3">David
      Dunlap </font></td>
    <td width="481" height="9">&nbsp;</td>
    <td width="362" height="9">Todd Kehrli or Jim Byers</td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="2">Chief Financial Officer</td>
    <td width="481" height="2">&nbsp;</td>
    <td width="362" height="2">MKR Group, Inc.</td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="5"><font face="Times New Roman, Times, serif" size="3">510/933-3035</font></td>
    <td width="481" height="5">&nbsp;</td>
    <td width="362" height="5"><font face="Times New Roman, Times, serif" size="3">323/468-2300
      </font></td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="11">dave@socketmobile.com</td>
    <td width="481" height="11">&nbsp;</td>
    <td width="362" height="11">sckt@mkr-group.com</td>
  </tr>
</table>
<p>&nbsp;</p><p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b><font size="5"><br>
  SOCKET MOBILE REPORTS 2007 FIRST QUARTER FINANCIAL RESULTS<br>
  </font></b> <br>
  </font></p>
<p align="left"><font face="Times New Roman, Times, serif" size="3"> </font><font face="Times New Roman, Times, serif" size="3"><b>
  NEWARK, Calif., - April 25, 2007</b> - Socket Communications, Inc. (NASDAQ:
  SCKT), dba Socket Mobile, Inc., an innovative provider of mobile productivity
  products, today reported financial results for the 2007 first quarter ended
  March 31, 2007.</font></p>
<p>Revenue for the first quarter of 2007 was $5.5 million, compared to revenue
  of $6.8 million for the same quarter a year ago and $5.4 million in the immediately
  preceding quarter. Net loss applicable to common stockholders for the first
  quarter was $1.3 million, or a loss of $0.04 per share, compared to a net loss
  applicable to common stockholders of $380,000, or a loss of $0.01 per share,
  in the first quarter of 2006 and a net loss of $1.3 million, or a loss of $0.04
  per share, in the immediately preceding quarter. The portion of the net loss
  attributable to stock option expensing in the first quarter of 2007 was $282,000,
  or $0.01 per share, compared to $326,000, or $0.01 per share, in the first quarter
  of 2006 and $281,000, or $0.01 per share, in the immediately preceding quarter.</p>
<p>Cash and cash equivalents were approximately $5.2 million at March 31, 2007,
  compared to $7.5 million at March 31, 2006 and $6.1 million at December 31,
  2006.</p>
<p>Kevin Mills, president and chief executive officer, commented, "Underneath
  our first quarter's lackluster results, we are making solid progress in our
  strategic transition from a peripherals supplier to a systems company addressing
  the business mobility market. To this end, development of our recently announced
  SoMo&#153; 650 handheld mobile computer is proceeding as planned. We're delivering
  evaluation units to high-profile and volume customers and expect to begin shipping
  production units in the second quarter. In addition, we've strengthened our
  sales organization with the addition of Intermec veteran Bob Zink as Senior
  VP of Worldwide Sales and Marketing. Contributing to the modest improvement
  in revenue in the first quarter from the December quarter was the strong growth
  and record sales in our data collection business. Consequently, we are excited
  about the opportunities ahead and our prospects for the second half of the year
  and beyond as we move to become a one-stop systems company."</p>
<p>&nbsp;</p>
<hr>
<p><b>Conference Call</b><br>
  <br>
  Management of Socket will hold a conference call and web cast today at 2 P.M.
  PDT to discuss the quarterly results and outlook for the future. The dial-in
  number to access the call is (877) 407-8033 from within the U.S. or (201) 689-8033
  from international locations. A replay will be available via telephone for a
  week following the call at (877) 660-6853 from within the U.S., or (201) 612-7415
  from international locations. Access code for the replay is 286# followed by
  conference ID 233827#. The call will also be carried live and available via
  replay through a link on Socket's website at www.socketmobile.com and a transcript
  will be posted within a few days of the call. </p>
<p><b>About Socket Mobile</b></p>
<p>Socket Mobile is a mobile computing hardware systems company. Its handheld
  mobile computer and large portfolio of essential, mobile-data collection and
  connectivity peripherals make the company a one-stop supplier of systems designed
  to increase mobile information accuracy and worker productivity. Founded in
  1992, Socket is leveraging its years of experience and expertise in the mobile
  computing market to deliver an easy-to-deploy mobility system. The company partners
  with application developers and value added resellers to bring a complete solution
  to the small-to-medium business market. Socket also offers OEM solutions and
  software development programs based on proprietary technology. Socket Mobile
  is headquartered in Newark, Calif. and can be reached at (510) 933-3000 or www.socketmobile.com.</p>
<p><font size="2"><i>Socket is a registered trademark of Socket Communications,
  Inc., dba Socket Mobile, Inc. All other trademarks and trade names contained
  herein may be those of their respective owners. &copy; 2007, Socket Communications,
  Inc., dba Socket Mobile, Inc. All rights reserved. </i></font></p>
<p><b>Forward Looking Statements</b> <br>
  <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 with respect to the introduction,
  volume shipment, distribution, timing and market acceptance of our new handheld
  mobile computer product, and statements predicting trends, sales and market
  opportunities in the markets in which we sell 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 the introduction
  or volume shipment of our new product may be delayed or not happen as predicted,
  if ever, due to technological, market, or financial factors, including the availability
  of necessary working capital, the risk that market acceptance and sales opportunities
  may not happen as anticipated once the product has been introduced into the
  market, the risk that our integrator program and current distribution channels
  may not choose to distribute the new product or may not be successful in doing
  so, the risk that acceptance of our new product in vertical application markets
  may not happen as anticipated and the risk that evidence of strength in the
  mobile computing market may not be indicative of a trend, and other risks described
  in our most recent Form 10-K and 10-Q reports filed with the Securities and
  Exchange Commission.</p>
<p>&nbsp;</p>
<p align="center">--Financial tables to follow--</p>
<p align="center">&nbsp;</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>2007</u> </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>
  </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> $ 5,548
        </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>
  </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> 2,763</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>
  </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>2,785</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>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17 valign="bottom"> <font face="Times New Roman, Times, serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font> <font face="Times New Roman, Times, serif" size=3></font><font face="Times New Roman, Times, serif"
      size=2> </font> <font face="Times New Roman, Times, serif" size=3></font>Gross
      profit percent </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>50%</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>1,427</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>
  </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>1,759</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>
  </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>857</font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>842</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>34</font></div>
    </td>
    <td width="25%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>36</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>4,077</font></p>
    </td>
    <td width="25%" height=18>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,777</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>(34)</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Deferred income tax
        expense </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>8</font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>--</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Net loss</font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>(1,266)
        </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>(369)
        </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>--</font></p>
    </td>
    <td width="25%" height=29>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>(11)</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=14>
      <p><font face="Times New Roman, Times, serif" size=3>Net loss applicable
        to common stockholders</font> </p>
    </td>
    <td width="25%" height=14>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (1,266)
        </font></p>
    </td>
    <td width="25%" height=14>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (380)
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td valign=top width="51%" height=31>
      <p><font face="Times New Roman, Times, serif" size=3>Net loss per share
        applicable to common stockholders:<br>
        Basic and diluted</font></p>
    </td>
    <td width="25%" height=31>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (0.04)
        </font></p>
    </td>
    <td width="25%" height=31>
      <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>31,872</font></p>
    </td>
    <td width="25%" height=13>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>30,395</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, 2007<br>
        (Unaudited) </font></div>
    </td>
    <td height=26>
      <div align="center">December 31, 2006*<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>$ 5,182</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 6,104
        </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>3,280
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>2,699
        </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>2,696
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>2,350</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>174</p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>193</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>1,121</div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>742</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>575</p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>609</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>284</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>292</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>$ 23,110
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 22,787
        </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>$ 4,336
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 3,192
        </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>2,285
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>2,213
        </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>1,462
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>1,473
        </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>234</font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>158</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Common stock</font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>52,871
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>52,563
        </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>(38,078)</font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>(36,812)</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>$ 23,110
        </font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size=3>$ 22,787
        </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>
</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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