<SEC-DOCUMENT>0000944075-11-000023.txt : 20110426
<SEC-HEADER>0000944075-11-000023.hdr.sgml : 20110426
<ACCEPTANCE-DATETIME>20110426160752
ACCESSION NUMBER:		0000944075-11-000023
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20110331
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20110426
DATE AS OF CHANGE:		20110426

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOCKET MOBILE, 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:	000-25904
		FILM NUMBER:		11780225

	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

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SOCKET COMMUNICATIONS INC
		DATE OF NAME CHANGE:	19950418
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form-8k0426.htm
<DESCRIPTION>FORM 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>
  <b>CURRENT REPORT</b><br>
  <br>
  Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934<br>
  <b><br>
  </b></font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3"><b>April 26</b></font><font face="Times New Roman, Times, serif"><b><font size=3>,
  2011</font></b><font size=3> <br>
  <font size="2">(Date of earliest event reported)</font></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="6"><strong>SOCKET
  MOBILE, 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"><font face="Times New Roman, Times, serif">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):</font></p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Written communications pursuant to Rule 425 under the Securities Act (17
    CFR 230.425)</font></font></p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
    240.14a-12)</font></font></p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b))</font></font></p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))<br>
    <br>
    </font></font></p>
</div>
<p style="PAGE-BREAK-BEFORE: always"> </p>
<div align=left></div>
<div align=left>
  <hr width="100%">
</div>
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif"><b>Item 2.02 Results of Operations
  and Financial Condition.</b><br>
  </font></p>
<p><font face="Times New Roman, Times, serif" size="3">On April 26, 2011, Socket
  Mobile, Inc., issued a press release reporting its results for the three months
  ended March 31, 2011. A copy of the press release is furnished as Exhibit 99.1.</font><font face="Times New Roman, Times, serif"></font><font face="Times New Roman, Times, serif">
  </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></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"><font face="Times New Roman, Times, serif">Exhibit
          Number</font></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"><font face="Times New Roman, Times, serif">Description</font></div>
        </div>
      </div>
    </td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">&nbsp;</td>
    <td width=29 height="22">&nbsp;</td>
    <td width=680 height="22">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">
      <div align=center><font
      face="Times New Roman, Times, serif">99.1</font></div>
    </td>
    <td width=29 height="22">&nbsp;</td>
    <td width=680 height="22"><font face="Times New Roman, Times, serif">Text
      of press release, dated April 26, 2011, titled &quot;Socket Mobile Reports
      First Quarter 2011 Results&quot;.</font></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><font face="Times New Roman, Times, serif">Pursuant to the requirements of
  the Securities Exchange Act of 1934, the registrant has duly caused this report
  to be signed on its behalf by the undersigned hereunto duly authorized.</font></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 MOBILE,
        INC.</b></font></td>
    </tr>
    <tr>
      <td width=300>&nbsp;</td>
      <td width=21>&nbsp;</td>
      <td colspan="2">&nbsp;</td>
    </tr>
    <tr>
      <td width=300>
        <div align=left></div>
      </td>
      <td width=21>&nbsp;</td>
      <td colspan="2">&nbsp;</td>
    </tr>
    <tr>
      <td width=300 height=19>
        <div align=left><font face="Times New Roman, Times, serif">Date: April
          26, 2011</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"><font face="Times New Roman, Times, serif">Exhibit
          Number</font></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"><font face="Times New Roman, Times, serif">Description</font></div>
        </div>
      </div>
    </td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">&nbsp;</td>
    <td width=29 height="22">&nbsp;</td>
    <td width=680 height="22">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">
      <div align=center><font
      face="Times New Roman, Times, serif">99.1</font></div>
    </td>
    <td width=29 height="22">&nbsp;</td>
    <td width=680 height="22"><font face="Times New Roman, Times, serif">Text
      of press release, dated April 26, 2011, titled &quot;Socket Mobile Reports
      First Quarter 2011 Results&quot;.</font></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>EXHIBIT 99.1
<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>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b><font size="5"><br>
  </font></b><font size="4"><b><font size="5">SOCKET MOBILE REPORTS FIRST QUARTER
  2011 RESULTS<br>
  </font></b><font size="5"><i>First Quarter Revenue Up 54% Sequentially to $4
  Million</i></font><b><font size="5"> <br>
  <br>
  </font></b></font></font></p>
<p align="left"><font face="Times New Roman, Times, serif" size="3"><b> NEWARK,
  Calif., - April 26, 2011 - </b>Socket Mobile, Inc. (NASDAQ: SCKT), an innovative
  provider of mobile productivity solutions, today reported financial results
  for the first quarter ended March 31, 2011. </font></p>
<p>Revenue for the first quarter of 2011 was $4.0 million, a 54 percent increase
  sequentially from revenue of $2.6 million in the immediately preceding quarter,
  and compared to revenue of $3.8 million for the same quarter a year ago. Net
  loss for the first quarter of 2011 was $928,000, or a loss of $0.24 per share,
  compared to a net loss of $1,039,000, or a loss of $0.27 per share, in the first
  quarter of 2010. </p>
<p>Earnings before interest, taxes, depreciation and amortization (EBITDA) for
  the first quarter of 2011 improved to a net loss of $295,000, or $0.07 per share,
  compared to a net loss of $687,000, or $0.18 per share, in the first quarter
  of 2010. EBITDA excludes interest, taxes, depreciation, amortization of intangible
  assets, debt discount amortization, and amortization of stock option expense
  as reflected in the reconciliation following the Condensed Summary Statements
  of Operations.</p>
<p>Operating expenses for the first quarter of 2011 were $2.1 million, a decrease
  of 19 percent compared to operating expenses of $2.6 million for the same quarter
  a year ago. </p>
<p>Kevin Mills, president and chief executive officer, commented, &quot;The sequential
  improvement in our first quarter revenue was primarily driven by strong sales
  of our cordless barcode scanning products, which grew 265 percent in the first
  quarter to $1.2 million, compared to $0.5 million in both the preceding quarter
  and in the first quarter a year ago. Cordless barcode scanning products represented
  30 percent of first quarter revenue. In addition, sales of our handheld computers
  and associated peripherals totaled $2.1 million in the first quarter of 2011,
  compared to $1.5 million in the previous quarter and $2.2 million in the first
  quarter a year ago and represented 52 percent of first quarter revenue. </p>
<p>&quot;Total orders received during the first quarter were $5.0 million. Our
  backlog of orders on hand at the end of the first quarter that are shippable
  in the following quarter was $3.2 million, of which $2.5 million in orders were
  for handheld computers. Shipments of our handheld computers during the first
  quarter continued to be constrained by an industry-wide shortage of LCD computer
  screens. We expect to significantly increase product availability during the
  second quarter.&quot;</p>
<p>&nbsp;</p>
<hr>
<p>&nbsp;</p>
<p>&quot;The increasing order pace for both our barcode scanners and our handheld
  computers reflects the improving economy, recent product introductions including
  our 2D Cordless scanner, and the phasing out by Hewlett-Packard of its 200 series
  handheld computers in Japan. Sales of our scanning products continue to be driven
  by a wide range of Smartphones and Tablets requiring cordless scanning solutions
  for mobile business applications. Sales of our SoMo650 handheld computer and
  related peripherals, which continue to gain traction, are also benefiting from
  the increasing number of Hewlett-Packard customers looking to transition to
  the SoMo platform, which is 100% compatible with their mobile applications.
  We remain committed to reaching sustainable profitable operating levels in 2011,&quot;
  Mills concluded. </p>
<p><b>Conference Call</b><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) 407-9210 from within the U.S. or (201) 689-8049
  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 371499#. The call will also be carried live and available via
  replay through a link on Socket's website at www.socketmobile.com. From the
  home page, choose &quot;About Socket&quot;/&quot;Investor Relations&quot;/&quot;Conference
  Calls and Events.&quot; A transcript will be posted within a few days of the
  call. </p>
<p><b>About Socket Mobile, Inc.</b><br>
  With more than 18 years of experience in the Automatic Identification and Data
  Capture market, Socket makes mobile computing and productivity work. The company
  offers a family of handheld computers and an extensive portfolio of AIDC peripherals
  designed specifically for business mobility deployments and to enable productivity
  increases and drive operational efficiencies in healthcare, hospitality and
  other vertical markets. The company also offers OEM solutions for the mobile
  device market. Socket is headquartered in Newark, Calif. and can be reached
  at 510-933-3000 or www.socketmobile.com.</p>
<p>&nbsp;</p>
<hr>
<p>&nbsp;</p>
<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 regarding new mobile computer, data
  collection and OEM products, including details on the timing, distribution and
  market acceptance of the products, and statements predicting trends, sales and
  market conditions and 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 products 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 application partners and current
  distribution channels may choose not to distribute the new products or may not
  be successful in doing so, the risk that acceptance of our new products 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.</p>
<p><font face="Times New Roman, Times, serif" size="3"><i>Socket, SoMo and the
  Socket logo are registered trademarks of Socket Mobile, Inc. All other trademarks
  and trade names contained herein may be those of their respective owners. &copy;
  2011 Socket Mobile, Inc. All rights reserved. </i></font></p>
<p>&nbsp;</p>
<table cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif" size="3"><b><u>Socket
      Mobile Media Contact:</u></b></font></td>
    <td width=488 height=25><font face="Times New Roman, Times, serif" size="3"><b><u>Socket
      Mobile Investor Contact:</u></b></font></td>
    <td width=488 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=25><font face="Times New Roman, Times, serif" size="3">Krista
      Rogers</font></td>
    <td width=488 height=25><font face="Times New Roman, Times, serif">David Dunlap</font></td>
    <td width=564 height=20><font face="Times New Roman, Times, serif">Todd Kehrli
      or Jim Byers</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif">Marketing
      Communications Specialist</font></td>
    <td width=488 height=20><font face="Times New Roman, Times, serif">Chief Financial
      Officer </font></td>
    <td width=564 height=20><font face="Times New Roman, Times, serif">MKR Group,
      Inc.</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif">(510) 933-3055</font></td>
    <td width=488 height=20><font face="Times New Roman, Times, serif">(510) 933-3035</font></td>
    <td width=564 height=20><font face="Times New Roman, Times, serif">(323) 468-2300</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif" size="3">krista@socketmobile.com
      </font></td>
    <td width=488 height=20><font face="Times New Roman, Times, serif">dave@socketmobile.com</font></td>
    <td width=564 height=20><font face="Times New Roman, Times, serif">sckt@mkr-group.com</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif" size="3"><br>
  </font></p>
<p align="center"><font face="Times New Roman, Times, serif" size="3">--Financial
  tables to follow--</font></p>
<p align="center">&nbsp;</p>
<hr>
<p align="center">&nbsp;</p>
<p>&nbsp;</p>
<table cellspacing=1 cellpadding=1 width=688 align=center border=1>
  <tr valign=bottom>
    <td colspan=3 height=70>
      <p align=center><font size="3" face="Times New Roman, Times, serif"><b>Socket
        Mobile, Inc.<br>
        Condensed Summary Statements of Operations (Unaudited)<br>
        (Amounts in Thousands except per share amounts and percentages)</b></font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp; </font></p>
    </td>
    <td colspan=2 height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">Three
        months ended March 31,</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp; </font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3"><u>2011</u>
        </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3"><u>2010</u>
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">Revenue</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3"> $ 4,039</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3"> $ 3,807
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">Cost of revenue</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 2,525</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 2,202</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">Gross profit</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,514</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,605</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17 valign="bottom"> <font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font> <font face="Times New Roman, Times, serif" size="3">Gross profit
      percent</font></td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">37%</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">42%</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">Research &amp; development
        </font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">655</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">681</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">Sales &amp; marketing
        </font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">828</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,239</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">General &amp; administrative
        </font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">595</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">661</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17><font face="Times New Roman, Times, serif" size="3">Amortization
      of intangibles</font></td>
    <td width="24%" height=17>
      <div align=center><font face="Times New Roman, Times, serif" size="3">15</font></div>
    </td>
    <td width="24%" height=17>
      <div align=center><font face="Times New Roman, Times, serif" size="3">15</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=18>
      <div align="left"> <font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;&nbsp;
        </font> <font face="Times New Roman, Times, serif" size="3">Total operating
        expenses</font></div>
    </td>
    <td width="24%" height=18>
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,093</font></p>
    </td>
    <td width="24%" height=18>
      <p align=center><font face="Times New Roman, Times, serif" size="3">2,596</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17><font face="Times New Roman, Times, serif" size="3">Interest
      (income) expense, net</font></td>
    <td width="24%" height=17>
      <div align=center><font face="Times New Roman, Times, serif" size="3">25</font></div>
    </td>
    <td width="24%" height=17>
      <div align=center><font face="Times New Roman, Times, serif" size="3">48</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">Debt discount amortization
        </font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">316</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">---</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">Deferred income tax
        expense </font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">8</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">---</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">Net loss</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">(928)
        </font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">(1,039)
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td valign=top width="51%" height=26>
      <p><font face="Times New Roman, Times, serif" size="3">Net loss per share:
        Basic and diluted</font><font face="Times New Roman, Times, serif" size="3"></font></p>
    </td>
    <td width="24%" height=26>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.24)
        </font></p>
    </td>
    <td width="24%" height=26>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (0.27)
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=13>
      <p><font face="Times New Roman, Times, serif" size="3">Weighted average
        shares outstanding: <br>
        </font><font face="Times New Roman, Times, serif" size="3">Basic and diluted</font></p>
    </td>
    <td width="24%" height=13>
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,935</font></p>
    </td>
    <td width="24%" height=13>
      <p align=center><font face="Times New Roman, Times, serif" size="3">3,789</font></p>
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<p align="center">Reconciliation of GAAP Net Loss to Earnings Before Interest,
  Taxes, Depreciation and Amortization<br>
  (EBITDA) (Unaudited)</p>
<p>&nbsp;</p>
<table cellspacing=1 cellpadding=1 width=688 align=center border=1>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp; </font></p>
    </td>
    <td colspan=2 height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">Three
        months ended March 31,</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp; </font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3"><u>2011</u>
        </font></p>
    </td>
    <td width="25%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3"><u>2010</u>
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p>Net loss GAAP</p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3"> $ (928)</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3"> $ (1,039)
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p>Interest (income) expense, net</p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 25</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3"> 48</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p>Income tax expense</p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">8</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">---</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">Depreciation </font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">90</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">124</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">Amortization of intangibles
        </font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">15</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">15</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>Debt discount amortization</td>
    <td width="24%" height=17>
      <div align=center><font face="Times New Roman, Times, serif" size="3">316</font></div>
    </td>
    <td width="24%" height=17>
      <div align=center><font face="Times New Roman, Times, serif" size="3">---</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>Amortization of stock option expense</td>
    <td width="24%" height=17>
      <div align=center><font face="Times New Roman, Times, serif" size="3">179</font></div>
    </td>
    <td width="24%" height=17>
      <div align=center><font face="Times New Roman, Times, serif" size="3">165</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="51%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">Net loss EBITDA </font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (295)</font></p>
    </td>
    <td width="24%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ (687)</font></p>
    </td>
  </tr>
</table>
<p><font face="Times New Roman, Times, serif"> </font> <font face="Times New Roman, Times, serif"><br>
  <br>
  <br>
  <br>
  <br>
  </font> </p>
<hr>
<font face="Times New Roman, Times, serif"><br>
<br>
<br>
<br>
<br>
</font>
<table cellspacing=1 cellpadding=1 width=674 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
        Mobile, Inc.<br>
        Condensed Summary Balance Sheets<br>
        (Amounts in Thousands)</b></font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td height=26 width="44%"><font face="Times New Roman, Times, serif" size="3">
      </font> <font face="Times New Roman, Times, serif" size="3"> </font> <font face="Times New Roman, Times, serif" size="3">
      </font> <font face="Times New Roman, Times, serif" size="3"> </font> <font face="Times New Roman, Times, serif" size="3"></font><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font> <font face="Times New Roman, Times, serif" size="3"></font></td>
    <td height=26>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">March
        31, 2011<br>
        (Unaudited) </font></div>
    </td>
    <td height=26>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">December
        31, 2010*<br>
        </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">$ 759</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 461
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size="3">Restricted cash </font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">---
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">711
        </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">1,687
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">814
        </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">1,375
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">1,699</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">203</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">128</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">392</font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">471</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">4,427
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">4,427
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size="3">Intangible technology</font>
      </p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">195</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">210</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">123</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">146</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">$ 9,161</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 9,067</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td colspan=3><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size="3">Accounts payable
        and accrued liabilities</font> </p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 4,549
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">$ 4,404
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p>Notes payable net of debt discount </p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">172
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">330
        </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">596
        </font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">674
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">Deferred service revenue</td>
    <td width="29%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">475</font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">521</font></div>
    </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><font face="Times New Roman, Times, serif" size="3">248</font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">245</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size="3">Common stock</font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">58,831</font></p>
    </td>
    <td width="27%">
      <p align=center><font face="Times New Roman, Times, serif" size="3">57,675
        </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">(55,710)</font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">(54,782)</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">$
        9,161</font></div>
    </td>
    <td width="27%">
      <div align=center><font face="Times New Roman, Times, serif" size="3">$
        9,067</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td colspan=3><font face="Times New Roman, Times, serif" size="3">*Derived
      from audited financial statements.</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p></p>
<p></p>
<p></p>
<p></p>
<p></p>
<p align="center"><font size="3" face="Times New Roman, Times, serif"># # #</font></p>
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