Zagg Inc (NASDAQ:ZAGG) Reports 4Q10 Results Ahead of Expectation

Zagg Inc (NASDAQ:ZAGG) reported fourth fiscal quarter financial results ahead of analysts' expectation on Monday. Net income for the fourth fiscal quarter of $3.4 million or $0.13 per share has been posted compared to $0.3 million or $0.01 per share for the same quarter last year. However, excluding the inventory write-off and a tax true-up for prior quarters, the EPS would have been a record $0.20, above the consensus estimate of $0.12. Revenue of $29.3 million has been recorded for the quarter, an increase of 157% year over year from $11.4 million for the same quarter last year, above the street consensus of $21.2 million. Revenue growth during the quarter was driven by strong sales from distribution partners such as AT&T Wireless and Verizon, as well as Best Buy, Radio Shack, Staples and Target, high demand for new smartphone and tablet devices, most notably the Apple iPad and iPhone 4, strong holiday seasonality and contribution from ZAGGmate (launched in December). Gross profit of $13.4 million has been posted for the quarter, an increase of 117% year over year but gross margin of 45.7% dipped from the 50.2% in the third quarter, 53.9% in the fourth quarter of 2009. Gross margin was hit by a $1.4 million one-time charge for obsolete inventory. Excluding that, gross margin was flat quarter over quarter at 50%. Adjusted EBITDA of $6.6 million, up 281% year over year was above the consensus estimate of $5.2 million. Shares of the company tumbled 85 cents or 10.48% to $7.26. The stock has 52 week range of $1.90-$10.56. Volume of 1.2 million shares has been reported compared to the daily average of 0.957 million shares. The market capitalization of the stock stands at $173.01 million with P/E of 25.51 and beta of 1.06. ZAGG Incorporated (ZAGG) designs, manufactures and distributes protective coverings, audio accessories and power solutions for consumer electronic and hand-held devices under the brand names invisibleSHIELD, ZAGGaudio, and ZAGGskins. Disclaimer: The assembled information distributed by epicstockpicks.com is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. Epicstockpicks.com does expect that investors will buy and sell securities based on information assembled and presented herein. EpicStockPicks.com will not be responsible in any way for or accept any liability for any losses arising from an investor's reliance on or use of information obtained from our website or emails. PLEASE always do your own due diligence, and consult your financial advisor.
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