Socket Mobile, Inc. (OTCMKTS:SCKT) recently announced record profits for full year 2015 which has lifted the stock to a new 52-week high at $2.96. The stock has broken of its trading range on 24x average volume which is quite significant given the stock is relatively unknown.

SCKT had a huge year in 2015 and a phenomenal fourth quarter. It reported a $1.4M increase in revenues from $17M in 2014 to $18.4M in 2015 representing a 8% growth. Net income surged $1.4M to $1.8M in 2015 from $0.4M in 2014. That is 350% growth in earnings which is nothing short of impressive for this small cap company.

Fourth quarter revenue in 2015 surged 38% to $5.4M from $3.9M the same quarter a year ago while net income skyrocketed to $0.96M from a loss of ($0.2M)…a net swing of over $1M. As CEO and President Kevin put it, “”The year-over-year improvement in net income for 2015 reflects revenue growth, improved margins, and moderate growth in operating expenses.”

The significant growth reflects the strength of the cordless scanning business which has been driven by the explosion in mobile applications running on Apple, Android, and Windows based mobile devices. In 2016, SCKT will continue to expand its rugged barcode scanners designed for mobile devices in harsh environments. Its primary focus and goal is to continue to attract and support mobile application developers with data collection products designed for the mobile markets and to achieve continued growth and profitability

Could SCKT potentially be acquired by another player given its rapid growth and strong foothold in a growing industry? Given its expansion into rugged barcode scanners, a potential acquire maybe by Explore Technologies which specializes in rugged tablets for harsh environments. There could be some synergies if the two companies collaborated on a full solution. One thing is for certain, SCKT will be a company to keep on your radar.

SCKT is a producer of mobile cordless barcode scanners for the business mobility markets. The company is run by Kevin J. Mills, its visionary CEO. It produces barcode scanning and mobile handheld computer products that are designed for workers that are mobile. SCKT has approximately 66 employees and its next earnings release will be April 21. The Company offers cordless barcode scanning products that connect over Bluetooth with smartphones, tablets and mobile computers.

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Socket Mobile, Inc. (OTCMKTS:SCKT)

SCKT is currently trading at a $20 million market valuation. The company is trading at a market cap less than several popular microcap and penny stock companies yet it has real products, highly profitable, and growing at a good clip. Its current price to earnings ratio is 8.84…significantly undervalued for a growth company. This is an exciting company that has plenty to offer and we will continue to monitor it.

We will be updating on SCKT when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with SCKT.

Disclosure: we hold no position in SCKT either long or short and we have not been compensated for this article.