Such statements involve risks and uncertainties and actual results could differ materially from the results anticipated in such forward-looking statements as a result of a number of factors, including, but not limited to, the risk that manufacture of our products may be delayed or not rolled out as predicted, due to technological, market, or financial factors, including the availability of product components and necessary working capital; the risk that market acceptance and sales opportunities may not happen as anticipated; the risk that our application partners and current distribution channels may choose not to distribute the products or may not be successful in doing so; the risk that acceptance of our products in vertical application markets may not happen as anticipated; and other risks described in our most recent Form 10-K and 10-Q reports filed with the Securities and Exchange Commission. Socket does not undertake any obligation to update any such forward-looking statements.With that said, I would now like to turn the call over to Socket’s President and CEO, Kevin Mills. Kevin Mills Thanks, Dave, and thank you for joining us today. In today’s call we will begin with a short review of our Q4 and overall 2010 results, and then outline the business opportunities we see in 2011. Our fourth quarter revenue of $2.6 million was much lower than expected due to the impact of an industry wide shortage of LCD components in the quarter, which cost us to defer shipments of over 1.2 million of SoMo related products into this year. The limiting factor in our Q4 revenue was the supply of material as opposed to demand for the products. We have seen improved bookings in January, which combined with our backlog carry forward into 2011 totaled more than 3.6 million in orders at the end of January that are scheduled for delivery in the first quarter. While 2010 remained a challenging environment for Socket as the overall pace of our business moved forward cautiously and slowly we did see good growth in bookings for both our SoMo and cordless scanning products, particularly towards the end of the year.
These strong bookings for handhelds and cordless barcode scanning products were offset during the year by declining revenue from our legacy plug-in type products that have been phased out, resulting in the overall decline in 2010 revenue.Late in 2010, we restructured our sales team and realigned our distribution channels to better position Socket for the business dynamics of today’s rapidly changing mobile marketplace. The result is we are seeing greater visibility on our near-term demand side of our business. While in the past we were waiting on customers to make a final purchasing decision prior to deploying our handheld or scanning products, today we are in the position of having those orders in hand due to a combination of backlog and stronger than normal January bookings. We currently remain limited by supply, but feel the situation is being addressed since the worst of the supply issues will soon be behind us. To give a little more color on the supply problems, they were initially caused by higher than expected demand for screens by Apple and other mobile phone suppliers. This resulted in industry wide consolidation as companies like Foxconn [ph] purchased LCD manufacturers to meet the higher demand from the mobile phone market. As a result of this demand and consolidation, the display manufacturers readjusted their capacity priorities and smaller companies like Socket and many others were left without any production time in the short run. In an effort to address these supply issues, production was moved to newer facilities, which resulted in additional delays. Unfortunately, these new factories did not come online prior to Chinese New Year. As you may be aware, Chinese New Year just concluded at the end of last week, and the factories are in the process of coming back online. Read the rest of this transcript for free on seekingalpha.com