Socket Mobile’s stock rockets on heavy volume after reporting a profit jump, but with an asterisk

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Shares of Socket Mobile Inc. more than doubled (up 108%) on heavy volume to pace all premarket gainers Friday, after the maker of barcode scanners reported a more-than quadrupling in third-quarter profit, although the company warned that results weren’t complete and subject to goodwill impairment. Trading volume ballooned to 5.8 million shares, enough to make the stock the most actively traded ahead of the open, and well above the full-day average of about 308,000 shares. “All numbers that would be negatively impacted by an adjustment to goodwill are asterisked,” the company said in a statement. The company reported late Thursday that net income rose to $424,000*, or 6* cents a share, from $94,000, or 1 cent a share in the year-ago period. The company said reported net income didn’t include goodwill impairment, because the company and its auditors didn’t complete the annual review in time, citing uncertainties and complications associated with the impact of the COVID-19 pandemic. Revenue fell 17.5% from last year, but rose 51% from the second quarter, to $4.1 million. The stock has lost 9.3% year to date through Thursday, while the Russell 2000 index of small-capitalization stock has slipped 2.3% and the S&P 500 has gained 6.9%.
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