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<SEC-DOCUMENT>0000944075-07-000039.txt : 20071024
<SEC-HEADER>0000944075-07-000039.hdr.sgml : 20071024
<ACCEPTANCE-DATETIME>20071024161227
ACCESSION NUMBER:		0000944075-07-000039
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070930
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20071024
DATE AS OF CHANGE:		20071024

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:		071188305

	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-8k1024.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>October 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 October 24, 2007, Socket
  Communications, Inc., dba Socket Mobile, Inc., issued a press release reporting
  its results for the three and nine months ended September 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 October 24, 2007, titled "</font><font face="Times New Roman, Times, serif">Socket
      Mobile Reports 2007 Third Quarter Financial Results</font>&quot;.</td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center">1</p>
<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: October
          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>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center">2</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 October 24, 2007, titled "Socket Mobile Reports
      2007 Third Quarter Financial Results</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>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 cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td width=488 height=25><font face="Times New Roman, Times, serif"
      size=3><b><u>Socket Mobile Contacts:</u></b></font></td>
    <td width=488 height=20><font face="Times New Roman, Times, serif"
      size=3><b><u>Editorial Contacts:</u></b></font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=25><font face="Times New Roman, Times, serif"
      size=3>Carol Montalvo </font></td>
    <td width=564 height=20>Monica Appelbe or Michelle Homes</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>socketmobile@lewispr.com</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>Investor Relations Contacts:</u></b></font></td>
    <td width=564 height=20><font face="Times New Roman, Times, serif"
      size=3><b></b></font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=25><font face="Times New Roman, Times, serif"
      size=3>David Dunlap</font></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>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>
  </font></b></font><font face="Times New Roman, Times, serif" size="5"><b>Socket
  Mobile Reports 2007 Third Quarter Financial Results</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><br>
  NEWARK, CA - October 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 third quarter ended September
  30, 2007.</font></p>
<p>Revenue for the third quarter of 2007 was $5.4 million, compared to revenue
  of $6.0 million for the same quarter a year ago and $6.3 million in the immediately
  preceding quarter. Net loss applicable to common stockholders for the third
  quarter was $898,000, or a loss of $0.03 per share, compared to a net loss of
  $838,000, or a loss of $0.03 per share, in the third quarter of 2006 and a net
  loss of $745,000, or a loss of $0.02 per share, in the immediately preceding
  quarter. The net loss included stock option expense in the third quarter of
  2007 of $258,000, or $0.01 per share, compared to $298,000, or $0.01 per share,
  in the third quarter of 2006 and $253,000, or $0.01 per share, in the immediately
  preceding quarter. Cash and cash equivalents were $4.4 million at September
  30, 2007, compared to $5.9 million at June 30, 2007 and $6.2 million at September
  30, 2006.</p>
<p>Kevin Mills, president and chief executive officer, commented, "The roll out
  of our SoMo 650 handheld computer continues on track and we have met our third
  quarter objectives of ramping up production and enabling widespread customer
  evaluation and qualification of the product to commence. To this end we shipped
  2500 units into the channel as of the end of the quarter. From these shipments
  we sold 1000 SoMo 650 units and we recognized revenue of $448,000 in the third
  quarter, reflecting our policy of recognizing revenue when products sell out
  of our distribution channel. Sales were mostly small quantity purchases by individual
  businesses as they initiate their respective product evaluation processes. Thus
  far, we have received excellent customer feedback as well as positive reviews
  from the trade press. We are confident that once customer validation is complete,
  and deployment begins, sales volume of both the SoMo 650 and our peripheral
  products will increase.</p>
<p>"Total revenue for the third quarter was impacted by a slowdown in sales of
  our data collection and network connectivity peripheral products during the
  quarter. Consistent with the unsettled nature of the PDA market of the past
  two years, there was an announcement in early September by a major handheld
  computer manufacturer of new PDA models that address the consumer market. Such
  announcements typically slow customer deployment of our peripheral products
  because of the time needed to evaluate or adopt new PDA models. Avoiding the
  uncertainty and delays caused by such announcements was a fundamental objective
  in pursuing our own handheld computer platform. Our commitment to the SoMo 650
  model for a three to five year time period extends the return on investment
  made by our customers and increases market stability by reducing the frequency
  and timing of model changeovers. We are confident that our business model is
  enhanced by our new system strategy. However we may continue to experience ups
  and downs in our peripheral business until customers move into the deployment
  stage with the SoMo handheld computer."</p>
<p>For the nine months ended September 30, 2007, total revenue was $17.3 million,
  compared to $19.6 million for the same period in 2006. Net loss applicable to
  common stockholders was $2.9 million, or a loss of $0.09 per share, compared
  to a net loss of $1.7 million, or a loss of $0.05 per share for the same period
  in 2006. The net loss included stock option expense for the first nine months
  ended September 30, 2007 of $793,000, or $0.02 per share, compared to $934,000,
  or $0.03 per share, for the nine months ended September 30, 2006.</p>
<p><br>
  <font face="Times New Roman, Times, serif" size="3"><b>Conference Call</b><br>
  <br>
  Management of Socket will hold a conference call and web cast today at 2 P.M.
  Pacific Time 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 254494#. 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>
  SSocket 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 business mobility use and an extensive
  portfolio of essential mobile data collection and networking peripherals that
  enable mobile automation and productivity increases. The company also offers
  OEM solutions. 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></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 and effects on our
  revenue and business 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 all 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 for our new product
  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>&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="32%" height=42 valign="bottom">
      <p><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp; </font></p>
    </td>
    <td colspan=2 height=42 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">Three
        months ended <br>
        September 30,</font></p>
    </td>
    <td colspan=2 height=42 valign="bottom">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">Nine
        months ended <br>
        September 30,</font></div>
    </td>
  </tr>
  <tr>
    <td width="32%" 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="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>
  </tr>
  <tr>
    <td width="32%" 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">$ 5,424</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 5,974</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 17,272</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 19,588</font></p>
    </td>
  </tr>
  <tr>
    <td width="32%" 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"> 2,808</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 3,151</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 8,787</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 9,990</font></p>
    </td>
  </tr>
  <tr>
    <td width="32%" 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">2,616</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,823</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">8,485</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">9,598</font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="32%" 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">48%</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">47%</font></div>
    </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">49%</font></div>
    </td>
  </tr>
  <tr>
    <td width="32%" 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">1,123</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,239</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,712</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,754</font></p>
    </td>
  </tr>
  <tr>
    <td width="32%" 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">1,799</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,839</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">5,528</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">5,442</font></p>
    </td>
  </tr>
  <tr>
    <td width="32%" 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">566</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">594</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,105</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,078</font></p>
    </td>
  </tr>
  <tr>
    <td width="32%" 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">35</font></div>
    </td>
    <td width="17%" height=17 valign="top">
      <div align=center><font face="Times New Roman, Times, serif" size="3">102</font></div>
    </td>
    <td width="17%" height=17 valign="top">
      <div align=center><font face="Times New Roman, Times, serif" size="3">107</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="32%" 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">3,522</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">3,707</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">11,447</font></div>
    </td>
    <td width="17%" height=17>
      <div align="center"><font size="3">11,381</font></div>
    </td>
  </tr>
  <tr>
    <td width="32%" 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>(16)</div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center>(46)</div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">(77)</font></div>
    </td>
    <td width="17%" height=17 valign="bottom">
      <div align=center><font face="Times New Roman, Times, serif" size="3">(128)</font></div>
    </td>
  </tr>
  <tr>
    <td width="32%" 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="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">24</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>
  </tr>
  <tr>
    <td width="32%" 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">(898)
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">(838)
        </font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">(2,909)</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">(1,655)</font></p>
    </td>
  </tr>
  <tr>
    <td width="32%" 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="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">(11)</font></p>
    </td>
  </tr>
  <tr>
    <td width="32%" 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">$ (898)</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (838)</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (2,909)</font></p>
    </td>
    <td width="17%" height=17 valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (1,666)</font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="32%" 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">$ (0.03)
        </font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.03)
        </font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.09)
        </font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.05)
        </font></p>
    </td>
  </tr>
  <tr>
    <td rowspan="2" height=17 width="32%" 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">31,948
        </font></p>
    </td>
    <td rowspan="2" height=17 width="17%" valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">31,846
        </font></p>
    </td>
    <td rowspan="2" height=17 width="17%" valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">31,912
        </font></p>
    </td>
    <td rowspan="2" height=17 width="17%" valign="bottom">
      <p align=center><font face="Times New Roman, Times, serif" size="3">31,313
        </font></p>
    </td>
  </tr>
  <tr valign=bottom> </tr>
</table>
<br>
<br>
<br>
<br>
<hr>
<br>
<br>
<br>
<br>
<br>
<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">September
        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">$ 4,411</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>2,855</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">2,156
        </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">281</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">1,149</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">507</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">267</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">$ 21,424
        </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">$ 2,970</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">2,214</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">1,725</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">464</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>333</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">53,439</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">(39,721)</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">$
        21,424</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>
<p align="center"><font size="3" face="Times New Roman, Times, serif"># # #</font></p>
</body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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