Socket Mobile, Inc. - MKR Group

Socket Mobile, Inc. 

AeA MicroCap Conference 

May 4, 2009 

Presenter: 

David Dunlap, CFO 

NASDAQ Capital Market: SCKT 

Business Mobility Now! 

© 2009 Socket Mobile, Inc. | All rights reserved. 

1

Forward Looking Statements 

During the course of this presentation, we may make forward-looking statements that involve 

risks and uncertainties, including without limitation risks and uncertainties relating to the 

company's financial prospects and projections, the company's ability to market a handheld 

computer and increase its business in the Mobile Computing markets. These forward-looking 

statements speak only as of the date hereof and are based upon the information currently 

available to the company. Such information is subject to change, and the company will not 

necessarily inform you of such changes. Among the important factors that could cause actual 

results to differ materially from those in the forward-looking statements are new and changing 

technologies, customer acceptance of those technologies, fluctuations or cancellations in 

orders from distribution customers, new and continuing adverse economic conditions, and the 

company's ability to compete effectively with other products. These and other factors could 

cause actual results to differ materially from those presented in any forward-looking statement 

and are discussed in the company's filings with the Securities and Exchange Commission 

including its recent filings on Forms 10-K and10-Q. 



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Socket Mobile, Inc. - Background 

» Founded in 1992, public since 1995 

Bluetooth pioneer 

Wi-Fi experts on mobile devices 

PCMCIA, CompactFlash and SD I/O “champions” 

» Leading mobile peripherals supplier 

Plug-in barcode, RFID, modems and Ethernet adapters 

Bluetooth cordless barcode scanners 

Worldwide two-tier distribution channel with several hundred VARs & SIs 

» In 2007, changed focus for a new direction 

Systems company with emphasis on “Business Mobility” 

Currently have shipped over 15,000 SoMo handheld units 

Today we are Windows Mobile experts 



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What is Business Mobility? 

» We view Business Mobility separated into two distinct segments: 

inside and outside the company’s four walls 

» We define Business Mobility as: 

Enabling mobile workers to increase productivity 

Real-time info at your fingertips when you’re away from your desk 

Access to the right info when you’re talking face to face with customers 



4

Why Business Mobility? 

» Pen and paper systems are going digital 

Increase worker productivity 

Reduce mistakes 

Lower costs 

» The Business Mobility market includes 

Mobile phones 

Handhelds 

Tablets 

Notebooks & desktop base stations 

» Not a one-size-fits-all market 

Business Mobility has different meanings in 

different segments, to address different 

needs 



5

Rising Importance of Mobility Investments 

Mobility investments transitioning from tactical to strategic 

Are mobility investments becoming more strategic to our organization? 

Answer from 700 IT decision makers: 

Source: VDC 



6

Increase Workforce Mobility = Boost Enterprise Service Usage 

Number of mobile workers in the U.S. 

is growing 

Number of Mobile Workers in the U.S. 

(Millions) 

» 80 million by 2010 

Enterprises increasingly feel the need to 

provide connectivity to mobile workers 

» Survey of 500 IT executives in the U.S. 

» 70% would invest in laptops, BlackBerrys and 

PDAs to enable employees to remotely connect to 

business applications 

Source: VDC 



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{ PRIORITY RANKING } 

Benefits 

1. Improved customer service 

2. Fast, reliable wireless 

communications 

3. Empower employees to be more 

productive 

4. Gain competitive advantage from 

real-time information 

5. Efficiencies from better supply chain 

and inventory management 

1. Cost of software, integration, 

service, and support 

2. Cost of hardware 

3. Security concerns 

4. Interference/performance problems 

5. Mobile device and infrastructure 

management 

Challenges 



8

How Business Mobility Solutions Are Being Delivered 

Computer & Peripherals 

Vertical Industry Partners 

with Targeted Expertise 

Best of Breed 

Customer Solutions 

+ = 

• Healthcare/Life Sciences 

• Hospitality 

• Retail Merchandising 

• Automotive 

• Education/Government 



9

Mobility “Inside” and “Outside” of a Company’s Four Walls 

» Corporate usage and deployments are application driven 

» Mobile terminal device selection criteria includes many elements: 

Portability / size / weight 

Battery life 

Screen size & resolution 

Wireless capabilities 

Operating system 

Warranty & support 

Keyboard / Keypad 

Durability of design 

Expansion options 

Accessories 

Lifetime to manufacturer 

And more… 



10

“Inside” the Four Walls – Mobile Device Choices 

PDAs – Durable vs. Rugged 

» Rugged PDA applications: 

Warehousing 

Transportation 

Logistics 

» Durable PDA applications: 

Nursing 

Retail merchandising 

Hospitality 



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“Inside” the Four Walls – Mobile Device Choices 

» Tablets – Fujitsu, Motion, others 

» Notebooks & Desktops – Dell, HP, others 



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“Outside” the Four Walls – Mobile Device Choices 

» Mobile phones – BlackBerry, Nokia, HTC, Motorola, others 

» PDAs – SoMo + Back Pack, Motorola, Intermec, others 



13

Socket Products for Business Mobility 

SoMo 650 

Application-Specific Adapters 

Bluetooth Barcode Scanners 

Accessories 



14

Case Study: Evangelical Lutheran Good Samaritan Society 

VERTICAL MARKET: Healthcare 

CRITICAL ASSET: People 

APPLICATION: Track daily activities, behavior, and 

dietary needs of residents at long term care facilities. 

BENEFIT: 

• Improved patient care 

• Better documentation for government compliance 



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Case Study: St. Clair Hospital, Pittsburgh 

VERTICAL MARKET: Healthcare 


APPLICATION: Bedside medication verification 

BENEFIT: Reduction in patient medication errors 

Application acquired by Hospira in 2008 and offered to 

hospitals worldwide. 



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Case Study: ARANZ Medical 

» VERTICAL MARKET: Healthcare 

» CRITICAL ASSET: People 

» APPLICATION: Capture wound data at the 

point-of-care. This information is analyzed, 

managed and stored in a database on the 

device. 

» BENEFIT: Improves workflow in wound 

assessment. 



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Case Study: Epocal 

» VERTICAL MARKET: Healthcare 

» CRITICAL ASSET: People 

» APPLICATION: Wireless blood testing 

provides lab results directly at bedside 

» BENEFIT: Significantly more cost effective 

than conventional analyzers 



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Case Study: Spacelabs Healthcare Clinical Trials Division 

VERTICAL MARKET: Life Science 


APPLICATION: Monitor blood pressure of patients in 

clinical trials 

BENEFITS: 

• Faster data processing time 

• Lower telephone costs 

• Time savings for both patients and medical personnel 

• Batch transmission of data 



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Case Study: Crosslink Orthopaedics 

VERTICAL MARKET: Life Science 

CRITICAL ASSET: Surgery kits 

APPLICATION: Track knee, hip or organ replacement 

parts in the operating room and replenish the parts kit 

BENEFITS: 

• Parts accountability 

• Faster replacement of parts 

• Fewer kits required 



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Medical Mobility Rx Product Family 

Handheld Computer 

Barcode Scanners 

SoMo 650Rx 

Broadband Wireless Adapter 

CF Scan Card 

5XRx 

Bluetooth Cordless 

Hand Scanner 7 Rx 

Charging Accessories 

Back Pack & 

Hand Strap 

Single or Multi-Bay Chargers 



21

Medical Mobility Solutions for Diverse Healthcare Applications 

Asset Tracking 

Supply Tracking 

Patient Tracking & 

Administration 

Pharmacy 

Records & Security 

Laboratory 



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Electronic Health Record (EHR) = Multiple Electronic Medical Records (EMRs) 

Prenatal Record 

Wellness Health 

Information 

Family Record 

Pharmacy/Medication 

Records 

Primary Care Record 

Pediatric Record 

Specialty Provider Record 

= EMRs 

Hospital Record 

Potentially Multiple 

Providers & Records 

Emergency 

Care Record 

Personal Health Record 

Employer/Other Health 

Records 

Payer/Financial Health 

History Information 

Many other Health 

History Repositories 

Multiple EMRs Possible 



23

Medical Mobility EMR Segments 

1. Integrated Healthcare Delivery Organizations 

2. Hospitals (5,500 and 500+ teaching hospitals) 

3. Ambulatory Care Providers (600,000) 

 

By Medical Specialty (165+ Subspecialties) 

4. Personal (Consumer Health Records) 

5. Home Healthcare 

6. Long-term Care Facilities (37,000) 

7. Specialty Systems (Dental, Alternative Care, Sports Medicine, etc.) 

All seven domain segments are found in EHR systems. 



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Stimulus Package will Benefit Healthcare and Socket 

» $19.2 Billion to promote the widespread adoption of healthcare IT 

and enable electronic exchange of health data to improve the quality 

of healthcare. 

Additional funding expected from state and local matching grants 

» Emphasis on adopting and using certified electronic health record 

systems. 

Medicare and Medicaid will give financial incentives to eligible hospitals, 

professionals 

» HIMSS is the healthcare member organization helping to set national 

standards for Electronic Health Records 

HIMSS = Healthcare Information and Management Systems Society 

Socket is a member organization. 

» Socket products facilitate the collection, retrieval, review and analysis of electronic 

health care information for mobile medical personnel. 



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Medical Mobility Solutions – Partners 



26

Socket’s Market Focus on “inside the four walls” 

Target Markets 

Healthcare/Life Sciences 

Hospitality 

Education 

Government 

Retail 

Automotive 



27

Socket’s OEM Business Serves the Industrial Mobility Market 

Socket Components 

Highly Ruggedized Vertical Devices 

Embedded into 



28

Financial Measurements 

» Revenue increase of 10% in 2008 despite Q4 slowdowns 

SoMo handheld computer sales grew in 2008 by 350% to $4.7 million 

» Cost reduction programs in place to lower 2009 breakeven point 

Q1 breakeven point reduced from $8.0 million to $6.0 million, cash breakeven = $5.5 million 

Objective in 2009 is profitability and revenue growth 

» Maturing SoMo markets, fewer competitive alternatives, partner program growth, new products 

» Balance sheet focus on liquidity 

Working capital bank line of up to $2.5 million in place through March 2010 

Inventory reduction program will free up cash by $1.0 million over 2 quarters 

Current ratio is 1.1 to 1 

No long term debt 

» Leveraged operations are favorable to bottom line 

3rd Party subcontract manufacturing in Asia for major components 

Infrastructure in place to manage worldwide general distribution channels 



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Annual Revenue Performance 

Revenue 

(Amounts in $ millions) 

+10% 

Operating Expenses 



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Summary 

» New Business Mobility Market Emerging 

Driven by increasing mobile workforce 

Driven by availability of powerful portable devices 

Driven by need for Real-time information 

Needing accurate and reliable data capture 

» Business Mobility is largely complementary to traditional Auto ID markets 

Business Mobility is bringing new people into the market 

Business Mobility is allowing more accurate and timely information everywhere 

Business Mobility is still nascent but its impact is growing 

» Socket is well positioned for growth 

Complete product set and a strong partner base 

Manufacturing and distribution infrastructures in place to support growth 

Experienced management team 



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For More Information: 



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Socket Mobile, Inc. - MKR Group

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