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<SEC-DOCUMENT>0000944075-07-000034.txt : 20070724
<SEC-HEADER>0000944075-07-000034.hdr.sgml : 20070724
<ACCEPTANCE-DATETIME>20070724162231
ACCESSION NUMBER:		0000944075-07-000034
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070630
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070724
DATE AS OF CHANGE:		20070724

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:		07996469

	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-8k0724.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>July 24</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 July 24, 2007, Socket
  Communications, Inc., dba Socket Mobile, Inc., issued a press release reporting
  its results for the three and six months ended June 30, 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 July 24, 2007, titled "</font>Socket Mobile Reports
      Q2 2007 Revenue of $6.3 Million, up 14% Sequentially&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: July
          24, 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 July 24, 2007, titled "Socket Mobile Reports Q2
      2007 Revenue of $6.3 Million, up 14% Sequentially</font>&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>pressreleaseq2.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<html>
<head>


</head>

<body bgcolor="#FFFFFF">
<p align="right"><font face="Times New Roman, Times, serif"><b><font size="3">Exhibit
  99.1</font></b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"> </font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0" align="left">
  <tr valign="bottom">
    <td width="488" height="25"><font face="Times New Roman, Times, serif" size="3"><b><u>Socket
      Media Contact:</u></b></font></td>
    <td width="564" height="25"><font face="Times New Roman, Times, serif" size="3"><b><u>Editorial
      Contact:</u></b></font></td>
  </tr>
  <tr valign="bottom">
    <td width="488" height="20">Carol Montalvo</td>
    <td width="564" height="25">Ronjini Mukhopadhyay</td>
  </tr>
  <tr valign="bottom">
    <td width="488" height="20">Sr. Marketing Communications Mgr.</td>
    <td width="564" height="20">Lewis PR</td>
  </tr>
  <tr valign="bottom">
    <td width="488" height="20">510/933-3051</td>
    <td width="564" height="20">415/992-4400</td>
  </tr>
  <tr valign="bottom">
    <td width="488" height="20"><font face="Times New Roman, Times, serif" size="3">carol@socketmobile.com
      </font></td>
    <td width="564" height="20"><font face="Times New Roman, Times, serif" size="3">socketmobile@lewispr.com
      </font></td>
  </tr>
  <tr valign="bottom">
    <td width="488" height="20">&nbsp;</td>
    <td width="564" height="20">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="488" height="20"><font face="Times New Roman, Times, serif" size="3"><b><u>Socket
      Investor Contact:</u></b></font></td>
    <td width="564" height="20"><font face="Times New Roman, Times, serif" size="3"><b><u>Investor
      Relations Contact:</u></b></font></td>
  </tr>
  <tr valign="bottom">
    <td width="488" height="20">David Dunlap</td>
    <td width="564" height="20">Todd Kehrli or Jim Byers</td>
  </tr>
  <tr valign="bottom">
    <td width="488" height="20">Chief Financial Officer</td>
    <td width="564" height="20">MKR Group, Inc.</td>
  </tr>
  <tr valign="bottom">
    <td width="488" height="20">510/933-3035</td>
    <td width="564" height="20">323/468-2300</td>
  </tr>
  <tr valign="bottom">
    <td width="488" height="20"><font face="Times New Roman, Times, serif" size="3">dave@socketmobile.com
      </font></td>
    <td width="564" height="20"><font face="Times New Roman, Times, serif" size="3">sckt@mkr-group.com
      </font></td>
  </tr>
</table>
<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">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif" size="5"><b>Socket
  Mobile Reports Q2 2007 Revenue of $6.3 Million, up 14% Sequentially</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><br>
  NEWARK, CA -- July 24, 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 second quarter ended June 30,
  2007.</font></p>
<p>Revenue for the second quarter of 2007 was $6.3 million, compared to revenue
  of $5.5 million in the immediately preceding quarter, and $6.9 million for the
  same quarter a year ago. Net loss for the second quarter was $745,000, or a
  loss of $0.02 per share, compared to a net loss applicable to common stockholders
  of $448,000, or a loss of $0.01 per share, in the second 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 second quarter of 2007 was $253,000, or $0.01 per share, compared
  to $311,000, or $0.01 per share, in the second quarter of 2006 and $282,000,
  or $0.01 per share, in the immediately preceding quarter. Cash and cash equivalents
  were $5.9 million at June 30, 2007, compared to $5.2 million at March 31, 2007
  and $7.3 million at June 30, 2006.</p>
<p>Kevin Mills, president and chief executive officer, commented, "We are pleased
  with the quarter-over-quarter increase in revenue, which was primarily driven
  by an increase in our OEM business. During the quarter we began shipping our
  new SoMo 650 handheld computer. The initial feedback from our customers has
  been excellent. We entered the third quarter as a systems company and are now
  focused on ramping up production and building increased awareness and demand
  for the SoMo, which we expect to be a significant contributor to revenue in
  the second half of the year. We are now a one-stop supplier of mobile computing
  hardware systems, offering a handheld mobile computer specifically designed
  for enterprise use and an extensive portfolio of essential mobile data collection
  and networking peripherals that enable mobile automation and productivity increases
  for small to medium deployments. Socket Mobile is dedicated to working with
  application providers to supply complete business mobility solutions. Consequently,
  we believe we are well positioned to be a leading supplier of business mobility
  systems and capitalize on the expanding opportunity that we see in the marketplace."</p>
<p>For the six months ended June 30, 2007, revenue was $11.8 million, compared
  to $13.6 million in the year ago period. Net loss applicable to common stockholders
  was $2.0 million, or a loss of $0.06 per share, compared to a net loss of $828,000,
  or a loss of $0.03 per share for the same period one year ago. Included in the
  2007 net loss were expenses relating to the expensing of stock options as required
  by Financial Accounting Standard 123(R) of $535,000 ($0.02 per share) for the
  six months ended June 30, 2007, compared to $636,000 ($0.02 per share) for the
  six months ended June 30, 2006.</p>
<p><font face="Times New Roman, Times, serif" size="3"><b><br>
  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 243705#. 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. </font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>About Socket Mobile</b><br>
  <br>
  Socket Mobile makes mobility computing and productivity work. The company is
  a one-stop supplier of mobile computing hardware systems, offering a handheld
  mobile computer specifically designed for enterprise use and an extensive portfolio
  of essential mobile data collection and networking peripherals that enable mobile
  automation and productivity increases for small to medium deployments. The company
  also offers OEM partner solutions and software development programs. Socket
  is headquartered in Newark, Calif. and can be reached at 510-933-3000 or www.socketmobile.com.
  </font></p>
<p><i><font size="3">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. </font></i></p>
<p>&nbsp;</p>
<p></p>
<p></p>
<p></p>
<p><b><font face="Times New Roman, Times, serif" size="3">Forward Looking Statements</font></b><font face="Times New Roman, Times, serif" size="3"><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, statements regarding our ability to be a one-stop provider
  of hardware systems in our markets, and other 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
  volume shipments 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; 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 other risks described
  in our most recent Form 10-K and 10-Q reports filed with the Securities and
  Exchange Commission. </font></p>
<p align="center"><font size="3" face="Times New Roman, Times, serif"><br>
  --Financial tables to follow--</font></p>
<p> </p>
<hr width="100%">
<p align="center">&nbsp;</p>
<p>&nbsp;</p>
<table cellspacing=1 cellpadding=1 width=80% align=center border=1>
  <tr>
    <td colspan=5 height=70 valign="bottom">
      <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>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp; </font></p>
    </td>
    <td colspan=2 height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">Three
        months ended June 30,</font></p>
    </td>
    <td colspan=2 height=17 valign="bottom">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">Six
        months ended June 30,</font></div>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp; </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"><u>2007</u>
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"><u>2006</u>
        </font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"><u>2007</u>
        </font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"><u>2006</u>
        </font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Revenue </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 6,300</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 6,855</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 11,848</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 13,614</font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Cost of revenue </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 3,216</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 3,454</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 5,979</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 6,839</font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Gross profit</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,084</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,401</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">5,869</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">6,775</font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="17%" height=17> <font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbspGross
      profit percent</font> </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">49%</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">50%</font></div>
    </td>
    <td width="16%" height=17>
      <div align="center"><font size="3">50%</font></div>
    </td>
    <td width="16%" height=17>
      <div align="center"><font size="3">50%</font></div>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Research and development
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,162</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,379</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,589</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,515</font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Sales and marketing
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,970</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,841</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,729</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,603</font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">General and administrative
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">682</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">641</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,539</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,484</font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom"><font face="Times New Roman, Times, serif" size="3">Amortization
      of intangibles</font></td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">34</font></div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">36</font></div>
    </td>
    <td width="17%" height=17 valign="top">
      <div align=center><font face="Times New Roman, Times, serif" size="3">68</font></div>
    </td>
    <td width="17%" height=17 valign="top">
      <div align=center><font face="Times New Roman, Times, serif" size="3">72</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="17%" height=17> <font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbspTotal
      operating expenses</font> </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">3,848</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">3,897</font></div>
    </td>
    <td width="16%" height=17>
      <div align="center"><font size="3">7,925</font></div>
    </td>
    <td width="16%" height=17>
      <div align="center"><font size="3">7,674</font></div>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom"><font face="Times New Roman, Times, serif" size="3">Interest
      (income) expense, net</font></td>
    <td width="17%" height=17 valign="bottom">
      <div align=center>(27)</div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center>(48)</div>
    </td>
    <td width="16%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">(61)</font></div>
    </td>
    <td width="16%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">(82)</font></div>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Deferred tax provision</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">8 </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">-- </font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">16</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">--</font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Net operating (loss)
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">(745)
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">(448)
        </font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">(2,011)</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">(817)</font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Preferred stock dividends</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">--</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">--</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">--</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">(11)</font></p>
    </td>
  </tr>
  <tr>
    <td width="36%" height=17 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Net income (loss)
        applicable to common stockholders</font> </p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (745)</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (448)</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (2,011)</font></p>
    </td>
    <td width="16%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (828)</font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="36%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">Basic and diluted
        net (loss) per share applicable to common stockholders</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.02)
        </font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.01)
        </font></p>
    </td>
    <td width="16%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.06)
        </font></p>
    </td>
    <td width="16%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.03)
        </font></p>
    </td>
  </tr>
  <tr>
    <td rowspan="2" height=17 width="36%" valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">Weighted average
        shares outstanding:<br>
        </font><font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbspBasic
        and diluted</font></p>
    </td>
    <td rowspan="2" height=17 width="17%" valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">31,915
        </font></p>
    </td>
    <td rowspan="2" height=17 width="17%" valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">31,696
        </font></p>
    </td>
    <td rowspan="2" height=17 width="16%" valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">31,894
        </font></p>
    </td>
    <td rowspan="2" height=17 width="16%" valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">31,046
        </font></p>
    </td>
  </tr>
  <tr valign=bottom> </tr>
</table>
<font face="Times New Roman, Times, serif"><br>
<br>
<br>
<br>
</font>
<hr>
<font face="Times New Roman, Times, serif"><br>
<br>
<br>
<br>
<br>
</font>
<table cellspacing=1 cellpadding=1 width=80% align=center border=1>
  <tr valign=bottom>
    <td colspan=3 height="67">
      <p align="center"><font face="Times New Roman, Times, serif" size="3"><b>Socket
        Communications, Inc.<br>
        Condensed Consolidated Summary Balance Sheets<br>
        (Amounts in Thousands)</b></font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td height=26 width="45%"><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;
      </font></td>
    <td height=26 width="28%">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">June
        30, 2007<br>
        (Unaudited) </font></div>
    </td>
    <td height=26 width="27%">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">
        December 31, 2006*<br>
        </font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Cash</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 5,898</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="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Accounts receivable
        </font></p>
    </td>
    <td width="28%">
      <p align=center>3,115</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="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Inventories</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,071
        </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="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Other current assets</font>
      </p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">272</font></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="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Property and equipment,
        net</font></p>
    </td>
    <td width="28%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">1,170</font></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="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Goodwill</font></p>
    </td>
    <td width="28%">
      <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="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Intangible technology</font>
      </p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">541</font></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="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Other assets</font>
      </p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">276</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="17%" height=17> <font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbspTotal
      assets</font> </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 23,141
        </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="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Accounts payable
        and accrued liabilities</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 4,149</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="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Bank line of credit</font>
      </p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,278</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="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Deferred income on
        shipments to distributors</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,550</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="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Bank loan</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">500</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">--</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="45%"><font face="Times New Roman, Times, serif" size="3">Capital
      leases/other non-current liabilities</font></td>
    <td width="28%">
      <div align=center>327</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="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Common stock</font></p>
    </td>
    <td width="28%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">53,160</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="45%">
      <p><font face="Times New Roman, Times, serif" size="3">Accumulated deficit</font>
      </p>
    </td>
    <td width="28%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">(38,823)</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="17%" height=17> <font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp</font>Total
      Liabilities and Equity </td>
    <td width="28%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">$
        23,141</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>
      <p><font face="Times New Roman, Times, serif" size="3">*Derived from audited
        financial statements. </font></p>
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<p></p>
<p></p>
<p></p>
<p></p>
<p></p>
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