ZAGG (ZAGG) Files 2010 10-K Ahead of Schedule, Offers Solid 2011 Outlook

QualityStocks would like to highlight ZAGG (NASDAQ: ZAGG), a market leader in providing innovative consumer products like films, skins, audio and power solutions that protect, personalize, and enhance the mobile experience.

In the company’s news Friday,

ZAGG reported the filing of its Form 10-K for 2010; it will file its Proxy Statement by April 30, 2011. ZAGG also offered 2011 guidance, forecasting higher revenue figures based on several key variables.

The company reported fourth-quarter 2010 revenue at $29.3 million, a 157 percent increase over the fourth quarter of 2009, and a sequential increase of 27 percent over the third quarter of 2010. Full-year revenue was $76.1 million, up 98 percent from the $38.4 million reported for full year 2009.

Gross profit for the quarter was $13.4 million, or 46 percent of sales, as compared to $6.1 million, or 54 percent of sales in the fourth quarter of 2009. Gross profit for the full year was $37.4 million, or 49 percent of sales, compared to $22.1 million, or 58 percent of sales in 2009.

ZAGG’s adjusted EBITDA for the fourth quarter increased 281 percent to $6.6 million, or $0.27 per share, versus $1.7 million, or $0.07 per share, for the comparable quarter of 2009.

Net income attributable to stockholders for the quarter was $3.4 million, or $0.13 per diluted share, for the fourth quarter 2010 versus $0.3 million, or $0.01, for the fourth quarter 2009, an increase of $0.12 per share year-over-year. Net income attributable to stockholders for the quarter net of a charge related to slow-moving inventory of $1.1 million and a one-time tax return to provision entry of $0.4 million was $4.9 million or $0.20 per share.

Net income attributable to stockholders for the full year was $10.0 million, or $0.41 per diluted share, as compared to net income attributable to stockholders of $3.4 million, or $0.15 per diluted share, in the prior year.

“We are very pleased to be releasing our audited financial statements for 2010 ahead of our March 31, 2011 deadline. We have worked very hard, together with our independent auditor, in preparing this document, and are confident it puts to rest all unfounded speculation about the audit or the contents of our 10-K,” Brandon T. O’Brien, CFO of ZAGG stated in the press release. “We want our shareholders to know that we are singularly focused on building our company and creating shareholder value.”

ZAGG offered guidance for 2011 in a recent conference call, giving financial guidance for 2011 revenues between $95 million-$100 million, and operating margins between 19 percent-22 percent. The company based its guidance on outlook for demand for its products, announced distribution agreements and increased contribution from Europe.

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Forward-Looking Statement:

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.