Value Microcaps Motherboard

[southacresdave]

SCKT.....some updates I know of:

1. They closed on a 600 Somo order in Japan (to a long-term customer who is a surveying company). It was on their blog. This is equivalent to approx. $250K. I'm not sure the delivery schedule but it's probably over the next 3-6 months. This is on top of the $1.6M order in 4th Q and 1rst Q from the OEM buyer.

There will probably be more and more orders like this. The Somo itself isn't end-of-life, but some of the components are (as mentioned on the cc call). I talked to the company and they said they can stock-pile those components ahead of time. What it does for larger long-term customers is force them to start to put their orders in now for the next few years so Socket can be sure to get enough parts.

The Somo isn't a cutting edge product anymore, but it works very well for certain customers. Socket has sold 60K+ of them over the years. The last time Socket did an end-of-life announcement on a product (a bluetooth component 6+ years ago) they got several million in extra orders.

2. Socket's parnter, Lightspeed POS, just raised $61M in a capital raise for rapid expansion. This brings the total to $121M they have raised. This is similar to the $60M that ShopKeep raised in June. The Tablet POS industry is only going one direction......up.

http://www.lightspeedpos.com/pos-hardware/
http://techcrunch.com/2015/09/16/lightspeed-61m-pos/

3. There are supposed to be several new products coming this fall. I know one of them (it was shown on their UK Twitter page): It's a combination tablet stand & barcode scanner charger. Not sure if it's Socket alone or a partnership.

4. They have started to promote the company a bit. They were invited last week and met in a round table presentation with 20 select microcap investors in S.F.

5. The iPad Pro is coming out. Here's an interesting article on it and Business Enterprise. Socket has said in the past that business enterprise sales could match or be bigger than the sales they do with Point-of-Sale.

http://www.forbes.com/sites/alexkonrad/2015/09/09/with-new-ipad-pro-apple-makes-its-move-to-dominate-the-enterprise-mobility-market/

6. I liked the Seeking Alpha article: http://seekingalpha.com/article/3510946-play-socket-mobile-for-the-rise-in-mpos-and-the-near-term-catalyst-of-continual-growing-profitability

I think he seriously underestimates 4th Q, but that's just my opinion and I won't go into detail on it until after the 3Q earnings come out.