EX-99.1 2 v094080_ex99-1.htm



FOR IMMEDIATE RELEASE:

ZAGG REPORTS THIRD QUARTER FINANCIAL RESULTS
***
REVENUE INCREASED 76% YEAR OVER YEAR
 
SALT LAKE CITY - November 14, 2007 - ZAGG Incorporated (OTCBB: ZAGG) a leading provider of protective coverings and accessories for consumer electronics today reported earnings for the three and nine month period ended September 30, 2007.

The Company reported net revenue of $1,437,408 and net loss of ($733,428), or ($0.04) per share, for the quarter ended September 30, 2007. In comparison, third quarter 2006 net revenue was $816,022 and net income of $15,556, or $0.00 per share. Third quarter net revenue increased $704,214, or 76%, from the same quarter last year, primarily due to strong demand for the Company’s invisibleSHIELD™ product line.

The net loss of ($733,428) includes non-cash expenses related to charges for the issuance of common stock to employees and key vendors prior to the adoption of the Company’s ESOP plan. Net of these charges, net income would be $66,572.

Robert G. Pedersen II, ZAGG president & CEO stated, “The third quarter is a glimpse of the kind of growth we plan to experience for many quarters to come, and I’m excited to be involved in such a fast moving company.” He added, “We are now well poised to be able to manage this continued growth with a very solid infrastructure and are well positioned for a strong Q4 and fiscal 2008.”

 

About ZAGG Inc:
ZAGG Inc designs, markets and sells protective coverings for consumer electronic and hand-held devices under the brand name invisibleSHIELD™, primarily in the United States and Europe. The patent-pending invisibleSHIELD™ is a protective, high-tech film covering, designed for iPods, laptops, cell phones, PDAs, watch faces, gaming devices, digital cameras, and other items. Currently, ZAGG offers over 1,000 designs with a lifetime replacement warranty through online channels, resellers, college bookstores, Mac stores and mall kiosks. Since inception, ZAGG has sold over 450,000 invisibleSHIELDs worldwide. The company plans to increase its product lines to offer electronic accessories, including an exclusive line for iPod, and an expanded array of invisibleSHIELD™ products for other industries. For more information please visit the company’s web sites at www.ZAGG.com and www.invisibleSHIELD.com.

ZAGG’s full catalog of over 1,000 invisibleSHIELD designs, the RockStic™ speaker system, and line of iPod accessories is available on the primary website at www.invisibleshield.com.

Special Note Regarding Forward Looking Statements:
Statements contained in this release regarding our expectations concerning the fourth quarter, and any other statements that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  All such statements are based upon information available to us as of November 14, 2007; and we disclaim any intention or obligation to update any such statements.  Actual results could differ materially from current expectations.  Factors that could cause or contribute to such differences include losses of key personnel; lower than anticipated sales of our products; unexpected technical, manufacturing, or supply issues with our products; supply shortages impacting our suppliers; any inability to maintain a competitive cost structure; competition; any inability to maintain stringent quality assurance standards and customer satisfaction; difficulties in identifying and completing strategic opportunities to grow our business; intellectual property disputes; adverse final judgments in litigation; general economic and/or industry-specific conditions including significant changes in the landscape of our products’ demand, pricing, or competition; and the other risks and uncertainties identified in the reports filed from time to time by ZAGG with the U.S. Securities and Exchange Commission, including ZAGG's most recent Annual Report on Form 10-KSB and Quarterly Reports on Form 10-QSB.

Media Contact:
Alpaytac Inc.
Caroline Rubenstein
312-245-9805 ext. 110
caroline@alpaytac.com 
or
ZAGG Inc
Robert Pedersen II, President and CEO
801-263-0699
robert@zagg.com

Investor Relations:
Catalyst Financial Resources, LLC
Aimee Boutcher
(503) 757-4017
aimee@catalystresearch.com
or
ZAGG Inc
Brandon O’Brien, CFO
(801) 263-0699
brandon@zagg.com 

 
ZAGG Incorporated
Condensed Consolidated Balance Sheets

   
Three Months Ended
      
Nine Months Ended
      
   
Sep 30, 2007
  
Sep 30, 2006
  
Sep 30, 2007
  
Sep 30, 2006
  
                   
Revenues
  
$
1,437,408
  
$
816,022
  
$
3,034,714
  
$
1,978,533
  
Cost of revenues
    
(299,027
)
  
(193,153
)
  
(689,858
)
  
(537,375
)
                           
Gross profit
    
1,138,381
   
622,869
   
2,344,856
   
1,441,158
 
                           
Expenses:
                          
Selling, general and administrative
    
834,927
   
450,175
   
1,873,712
   
1,121,539
 
Compensation expense related to stock issuance
    
800,000
   
-
   
800,000
   
-
 
Advertising and marketing
    
227,624
   
108,388
   
467,410
   
269,689
 
Legal and accounting
    
25,795
   
30,050
   
248,240
   
34,937
 
                           
Total expenses
    
1,888,346
   
588,613
   
3,389,362
   
1,426,165
 
                           
Total other income (expense), net
    
16,771
   
(18,700
)
  
(5,243
)
  
(11,740
)
                         
Net (loss) income before benefit (provision) for income taxes
    
(733,194
)
  
15,556
   
(1,049,749
)
  
3,253
 
Income tax (expense) benefit
    
(234
)
  
-
   
(2,544
)
  
13,464
 
                           
Net (loss) income
    
(733,428
)
  
15,556
   
(1,052,293
)
  
16,717
 
                           
Basic and diluted net loss per common share
  
$
(0.04
)
$
0.00
  
$
(0.07
)
$
(0.00
)
                           
Weighted average shares outstanding
    
17,631,495
   
10,000,000
   
16,131,123
   
10,033,333
 
 
 
Condensed Consolidated Balance Sheets
 
   
As of
  
As of
  
   
Sep 30, 2007
  
Dec 31, 2006
  
           
Current assets
  
$
3,118,876
  
$
791,320
  
Long-term assets
    
359,216
   
235,933
 
Total assets
  
$
3,478,092
  
$
1,027,253
  
               
Current liabilities
  
$
517,765
  
$
870,793
  
Long-term liabilities
    
12,365
   
12,087
 
Stockholders’ equity
    
2,947,962
   
144,373
 
Total liabilities and stockholders' equity
  
$
3,478,092
  
$
1,027,253