SCKT: Partner news on ShopKeep & Vend & others + inventory update
ShopKeep just announced that they have teamed up with Global Bay ($3.6B public company) to allow Global Bay to provide a tablet based POS system to all their customers. ShopKeep uses the Socket 7m and 7xi scanner exclusively with their system.
Vend, based out of Austraila, just opened up a San Francisco office to expand their operations in the U.S. They (and ShopKeep) are the two POS systems that PayPal have encouraged their customers to use. Vend uses Socket 7ci and 7xi scanners.
On Socket's social feeds, they have put links of multiple new smaller partners (international POS systems) and even some company's using the Somo integrated into their products. It's obvious the number of developers and applications continue to grow and come to the market. As most of you know, I am able to track inventory sales (reasonably well) at N.A. distributors. Sales right now per week have ramped up in the last 4 weeks as inventory is now fully stocked (and is replenished almost immediately). Problems with backlog are a thing of the past. To put into perspective, sales I track are 2x what they were in January. Even last week (with the holiday and slow day after) ended up strong. What people seem to not realize is that this is just the beginning of the whole industry, not the peak. What's it going to be 12 months from now? What's going to happen when international orders continue to build? What's going to happen as large contracts start to flow in?
At the Shareholder's Meeting, Kevin told the employees that they think they will eventually sell 20K to 30K scanners per quarter in time (they did 10K in 1rst Q). Toss in a rebounding Somo division and don't forget the new product that was hinted about during the Shareholder's Meeting. The growth is coming whether people believe it or not. I also know that the company has stated that they are fully committed to keeping expenses as low as possible going forward. They can make problems with their balance sheet go away in time with strong cash flow. Also, it's only a matter of time before the stock moves up accordingly.
2nd Q numbers will be released on July 23rd with a cc call.
