Socket Mobile (NASDAQ: SCKT) Stock Up 158% In Pre-Market. Here’s Why

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Shares of Socket Mobile, Inc. (NASDAQ: SCKT) went up 158.90% during the pre-market trading session of Friday. Its trading volume boomed to 16.23 million shares, which is enough to excite its stock ahead of the open. The computer Hardware company has reported that its third-quarter profit more than quadrupled, although the company revealed that the results weren’t complete and dependant on goodwill impairment.

Socket Mobile has reported a revenue of $4.1 million in the third quarter of 2020, recording a 17% decline in the revenue as compared to the revenue of $5.0 million for the same quarter a year ago. It has shared a Net income* of $424,000*, or $0.07* per share in the third quarter of 2020 as compared to the net income of $94,000 in the third quarter of 2019.

The company has disclosed that its revenue for the nine months ended September 30, 2020, was $11 million. It has recorded a decline of 24.7 percent in revenue for the third quarter of 2020 as compared to the $14.7 million in the same period a year earlier. SCKT has recorded the net loss for the nine months ended September 3, 2020, was $434,000*.

Socket Mobile has announced that its auditor did not complete the annual review process related to the goodwill impairment. It has revealed that all the numbers that would be negatively affected by adjustment goodwill are asterisked. The review of goodwill impairment got delay because of uncertainties prevailing due to the ongoing pandemic.  It will soon release the complete results in Form 10-Q for Q3 after completing the review of goodwill.

Socket Mobile, Inc. (NASDAQ: SCKT) shares were trading up 1332.88% at $3.360 during the pre-market trading session of Friday. Socket Mobile, Inc. (SCKT) share price went from a low point around $0.76 to briefly over $4.15 in the past 52 weeks. It has moved up 92.11% from its 52-weeks low and moved down -64.82% from its 52-weeks low. SCKT market cap has remained high, hitting $8.86 million at the time of writing.

Socket Mobile revealed that it has recorded the Gross margin on revenue for the three-month of 55.3% and the Gross margin on revenue for the nine-month period completed on September 30, 2020, was 53%.  It has revealed that the future will remain uncertain due to the coronavirus pandemic.

But its Q3 results and strong balance sheet will help the company to remain in a good position even in this pandemic.  President and CEO Kevin Mills announced that the company will release the complete results in the Form 10-Q that will be filed on or around November 13, 2020.

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