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<SEC-DOCUMENT>0000944075-08-000002.txt : 20080211
<SEC-HEADER>0000944075-08-000002.hdr.sgml : 20080211
<ACCEPTANCE-DATETIME>20080211110300
ACCESSION NUMBER:		0000944075-08-000002
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20071231
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20080211
DATE AS OF CHANGE:		20080211

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:		08591637

	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-8k0211.htm
<DESCRIPTION>8-K
<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>February
  11</b></font><b><font face="Times New Roman, Times, serif" size=3>, 2008</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 February 11, 2008, Socket
  Communications, Inc., dba Socket Mobile, Inc., issued a press release reporting
  its results for the three months and year ended December 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 February 11, 2008, titled "Socket Mobile Reports
      Q4 Revenue up 26% Sequentially and Year-Over-Year</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: February
          11, 2008</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 February 11, 2008, titled "Socket Mobile Reports
      Q4 Revenue up 26% Sequentially and Year-Over-Year</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 Media Contact:</u></b></font></td>
    <td width=488 height=20>&nbsp;</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>&nbsp;</td>
    <td width=564 height=20>Monica Appelbe or Michelle Homes</td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20>Director Marketing Communications </td>
    <td width=564 height=20>&nbsp;</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>&nbsp;</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>&nbsp;</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>
    <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 Mobile Investor Contact:</u></b></font></td>
    <td width=564 height=20>&nbsp;</td>
    <td width=488 height=20><font face="Times New Roman, Times, serif"
      size=3><b><u>Investor Relations Contacts:</u></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>&nbsp;</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>&nbsp;</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>&nbsp;</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>&nbsp;</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>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b><font size="5">
  Socket Mobile Reports Q4 Revenue up 26% Sequentially and Year-Over-Year</font></b><br>
  <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., - February 11, 2008</b> - Socket Communications, Inc. (NASDAQ:
  SCKT), dba Socket Mobile, Inc., an innovative provider of mobile productivity
  products, today reported financial results for the 2007 fourth quarter and year
  ended December 31, 2007.</font></p>
<p>Revenue for the fourth quarter of 2007 was $6.8 million, a 26% increase over
  revenue of $5.4 million in both the fourth quarter of 2006 and in the third
  quarter of 2007. Net loss applicable to common stockholders for the fourth quarter
  was $431,000, or a loss of $0.01 per share, compared to a net loss applicable
  to common stockholders of $1.3 million, or a loss of $0.04 per share, in the
  fourth quarter of 2006 and a net loss of $898,000, or a loss of $0.03 per share,
  in the previous sequential quarter. The portion of the net loss attributable
  to stock option expensing in the fourth quarter was $231,000, or $0.01 per share,
  compared to $281,000, or $0.01 per share, in the fourth quarter of 2006 and
  $258,000 or $0.01 per share in the previous sequential quarter.</p>
<p>Kevin Mills, president and chief executive officer, commented, "2007 was a
  year of change for Socket as we successfully transitioned from being a peripherals
  supplier to a systems supplier for the business mobility market. We outlined
  a new strategic direction at the beginning of 2007 around the introduction of
  our own handheld mobile computing device, the SoMo 650, designed expressly for
  business applications. In the fourth quarter, we recognized SoMo revenue of
  $826,000, an increase of 84% over the previous quarter. Overall customer response
  to the SoMo has been excellent and many have completed their evaluations and
  are now in the early stages of deployment. At the same time, we achieved sequential
  and year-over-year growth in our data collection and OEM products. We were pleased
  to finish the year having made this transition and having achieved near record
  revenue in the fourth quarter. </p>
<p>"As we enter 2008, we are focused on establishing the SoMo and our systems
  solutions in the mobile workforce market. Thus far, we are seeing excellent
  opportunities across all our traditional vertical markets, including health
  care, retail merchandising, hospitality and automotive. We are also seeing growth
  in Europe and will soon introduce multiple language support for the SoMo that
  will expand our available market and help accelerate sales. Looking ahead, we
  expect the pace of SoMo sales growth to build as more deployments roll out.
  We also plan to strategically invest in additional sales personnel and marketing
  programs to expand our market outreach and to support continued growth," Mr.
  Mills concluded.</p>
<p>Revenue for the 2007 full year totaled $24.1 million, compared to $25.0 million
  for 2006. Net loss applicable to common stockholders for 2007 was $3.3 million,
  or a loss of $0.10 per share, compared to a net loss applicable to common stockholders
  of $2.9 million, or a loss of $0.09 per share, for 2006. The portion of the
  net loss attributable to stock option expensing in 2007 was $1,023,000, or $0.03
  per share, compared to $1,215,000, or $0.04 per share in 2006. Cash and cash
  equivalents were approximately $5.0 million at December 31, 2007, compared to
  $6.1 million at December 31, 2006 and $4.4 million at September 30, 2007.</p>
<p><b>Conference Call</b><br>
  Management of Socket will hold a conference call and web cast today at 8:30
  A.M. PST (11:30 A.M. Eastern) 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 270843#. The call will also be carried live
  and available via replay through a link on Socket's website at www.socketmobile.com.
</p>
<p><b>About Socket Mobile</b><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 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.</p>
<hr>
<p><b>Forward Looking Statements</b><br>
  This press release contains forward looking statements within the meaning of
  Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
  Securities Exchange Act of 1934, as amended. Such forward looking statements
  include, but are not limited to, statements indicating our new handheld mobile
  computer product rollout, including details on the timing, distribution and
  market acceptance of the 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 our new
  product may be delayed or not rollout 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 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><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; 2008, Socket Communications, Inc. dba Socket
  Mobile, Inc. All rights reserved.</i></p>
<p align="center"><font face="Times New Roman, Times, serif" size="3">--Financial
  tables to follow--</font></p>
<hr>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table cellspacing=1 cellpadding=1 width=800 align=center border=1>
  <tr valign=bottom>
    <td colspan=5 height=24>
      <p align=center><b><font face="Times New Roman, Times, serif"
      size=3><b>Socket Communications, Inc.</b></font><br>
        C</b><font face="Times New Roman, Times, serif"
      size=3><b>ondensed Summary Statements of Operations<br>
        (Amounts in thousands except per share amounts)</b></font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" 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>Year ended<br>
        Dec 31,</font></p>
    </td>
    <td colspan=2 height=17>
      <div align="center"><font face="Times New Roman, Times, serif" size=3>Three
        Months ended<br>
        Dec 31,</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=33>
      <p><font face="Times New Roman, Times, serif" size=3>&nbsp;&nbsp; </font></p>
    </td>
    <td width="17%" height=33>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3><u>(Unaudited)<br>
        2007</u></font></p>
    </td>
    <td width="17%" height=33>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3><u><br>
        2006</u>*</font></p>
    </td>
    <td width="15%" height=33>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3><u>(Unaudited)<br>
        2007</u> </font></p>
    </td>
    <td width="15%" height=33>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3><u>(Unaudited)<br>
        2006</u></font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Revenue</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 24,118</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 24,981</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 6,846</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 5,393</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Cost of revenue</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>12,244</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>12,790</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,457</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>2,800</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Gross profit</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>11,874</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>12,191</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,389</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>2,593</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="17%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>&nbsp&nbsp&nbsp&nbsp&nbspGross
        profit percent</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>49%</font> </p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>49%</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>50%</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>48%</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Research and development
        </font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>5,005</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>5,137</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>1,293</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>1,383</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Sales and marketing
        </font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>7,380</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>7,145</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>1,852</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>1,703</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>General and administrative
        </font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>2,742</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>2,698</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>637</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>620</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17><font face="Times New Roman, Times, serif"
      size=3>Amortization of intangible technology</font></td>
    <td width="17%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>135</font></div>
    </td>
    <td width="17%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>140</font></div>
    </td>
    <td width="15%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>33</font></div>
    </td>
    <td width="15%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>33</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="17%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>&nbsp&nbsp&nbsp&nbsp&nbspTotal
        operating expenses</font></p>
    </td>
    <td width="17%" height=24 valign="top">
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>15,262</font></p>
    </td>
    <td width="17%" height=24 valign="top">
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>15,120</font></p>
    </td>
    <td width="15%" height=24 valign="top">
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,815</font></p>
    </td>
    <td width="15%" height=24 valign="top">
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,739</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17><font face="Times New Roman, Times, serif"
      size=3>Interest income, net</font></td>
    <td width="17%" height=17>
      <div align=center>(80)</div>
    </td>
    <td width="17%" height=17>
      <div align=center>(167)</div>
    </td>
    <td width="15%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>(3)</font></div>
    </td>
    <td width="15%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>(39)</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17><font face="Times New Roman, Times, serif"
      size=3>Deferred tax expense</font></td>
    <td width="17%" height=17>
      <div align=center>32</div>
    </td>
    <td width="17%" height=17>
      <div align=center>150</div>
    </td>
    <td width="15%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>8</font></div>
    </td>
    <td width="15%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>150</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Net loss</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>(3,340)</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>(2,912)</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>(431)
        </font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>(1,257)
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=28>
      <p><font face="Times New Roman, Times, serif" size=3>Preferred stock dividends</font></p>
    </td>
    <td width="17%" height=28>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>--</font> </p>
    </td>
    <td width="17%" height=28>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>(11)</font></p>
    </td>
    <td width="15%" height=28>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>--</font> </p>
    </td>
    <td width="15%" height=28>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>--</font> </p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=16>
      <p><font face="Times New Roman, Times, serif" size=3>Net loss applicable
        to common stockholders</font></p>
    </td>
    <td width="17%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (3,340)</font></p>
    </td>
    <td width="17%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (2,923)</font></p>
    </td>
    <td width="15%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (431)</font></p>
    </td>
    <td width="15%" height=16>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (1,257)</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td valign=top width="40%" 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>$ (0.10)</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="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (0.01)</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (0.04)</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <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&nbspBasic<br>
        &nbsp&nbsp&nbsp&nbsp&nbspFully Diluted</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">31,929<br>
        31,929</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">31,447<br>
        31,447</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">31,983
        <br>
        31,983 </font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">31,851
        <br>
        31,851 </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td colspan="5" height=24>
      <p><font face="Times New Roman, Times, serif" size=3>*Derived from audited
        financial statements.</font></p>
    </td>
  </tr>
</table>
<p>&nbsp;</p><hr>
<p>&nbsp; </p>
<p>&nbsp;</p>
<table cellspacing=1 cellpadding=1 width=695 align=center border=1>
  <tr valign=bottom>
    <td colspan=3 height="19">
      <p align=center><font face="Times New Roman, Times, serif"
      size=3><b>Socket Communications, Inc.<br>
        Condensed Summary Balance Sheets <br>
        (Amounts in thousands</b></font>) </p>
    </td>
  </tr>
  <tr valign=bottom>
    <td height=26 width="44%">&nbsp;</td>
    <td height=26 colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">December
        31, </font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td height=17 width="44%"><font face="Times New Roman, Times, serif" size=3>&nbsp</font></td>
    <td height=17 width="29%">
      <div align="center"><font face="Times New Roman, Times, serif" size=3>(Unaudited)<u><br>
        2007</u></font></div>
    </td>
    <td height=17 width="29%">
      <div align="center"><font face="Times New Roman, Times, serif" size=3><u>2006*</u></font></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>$ 4,963
        </font></p>
    </td>
    <td width="29%">
      <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> 2,615</font></p>
    </td>
    <td width="29%">
      <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>2,438
        </font></p>
    </td>
    <td width="29%">
      <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><font face="Times New Roman, Times, serif" size=3>283</font></p>
    </td>
    <td width="29%">
      <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><font face="Times New Roman, Times, serif"
      size=3>1,145</font></div>
    </td>
    <td width="29%">
      <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="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>9,798
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%" height="25">
      <p><font face="Times New Roman, Times, serif" size=3>Intangible technology</font>
      </p>
    </td>
    <td width="29%" height="25">
      <p align=center><font face="Times New Roman, Times, serif" size=3>474</font></p>
    </td>
    <td width="29%" height="25">
      <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>258</font></p>
    </td>
    <td width="29%">
      <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>$ 21,974
        </font></p>
    </td>
    <td width="29%">
      <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>$ 3,281</font></p>
    </td>
    <td width="29%">
      <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>2,622</font></p>
    </td>
    <td width="29%">
      <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>1,745</font></p>
    </td>
    <td width="29%">
      <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>Other liabilities</font></td>
    <td width="29%">
      <div align=center>792</div>
    </td>
    <td width="29%">
      <div align=center>158</div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Common and convertible
        preferred stock</font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>53,686
        </font></p>
    </td>
    <td width="29%">
      <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>(40,152)</font></div>
    </td>
    <td width="29%">
      <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>$ 21,974
        </font></div>
    </td>
    <td width="29%">
      <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 align="center"># # #</p>
</body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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