SCKT - I confirmed the licensing fee was $250k, so that had a large impact on earnings. But there is a positive going forward. The licensee (a medical device company) is allowed the right to manufacture the SoMo controller board used in their primary device, and to develop derivative works (limited to use in their own products). Socket will earn a future royalty for all products they manufacture. Therefore, we should expect to see some additional (high-margin) revenue from this agreement. Maybe not much, but at least SoMo is not entirely dead and may contribute a little as scanner growth continues.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.