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[southacresdave]

SCKT... Follow up information with CFO.

Their scanner business is growing sequentially and so there is no worries by myself there. I contacted the CFO cause I still worry about the Somo side of the business.....namely, where is the orders from former HP iPaq customers?? 4th Q results disappointed and I don't think 1rst Q numbers will be exciting either for this division (though scanner sales will be up sequentially again and keep growing as the number of apps grows). The new Somo 655 that will be available in June is exciting but will it matter? It got me thinking though and I contacted the CFO and asked when did the company start telling customers (in non-disclosure agreements) that this product was coming out? Turns out it was way back in the fall. They were concerned about selling Somo 650 units to large customers (and new iPaq customers) and then turning around and putting out a new upgraded unit 6 months later. They knew that customers wanted the upgrade already and wanted to be sure the company was going to support whatever product they bought for the next 5+ years. What Socket has found is that a large portion of these customers decided to hold off on orders in the 4th Q and instead wait to demo/evaluate the new 655 unit this spring. They currently have demo units in the hands of a lot of customers now. They have just started taking pre-orders for when it is deployed in June. Socket has already been told by many large customers that they have timed their HP iPaq replacement buying with the debut of the Somo 655.

I think 1rst Q numbers at the end of the month will not be exciting. What's important to look for: 1. How much did the scanner business grow sequentially 2. More updates on large customer demo programs with the Somo 655.