Earnings Review; Keep Zagg on your Small-cap Radar
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    Small-Cap Stock Spotlight: Zagg Rises on Strong Earnings Report

    Small-Cap Stock Spotlight: Zagg Rises on Strong Earnings Report

    Shares of Zagg Inc. (NASDAQ: ZAGG), maker of films, skins, audio and power solutions that protect, personalize and enhance mobile devices, traded as much 12% higher to $11.31 on Tuesday, extending gains for the third day in a row.  The stock saw trading volume hit over 5.22 million shares during the session, versus the 10-day average 1.22 million. ZAGG made an interesting spike on Monday, with investors welcoming the company’s latest quarterly results.

    ZAGG shares have gained 13.3% in the last five days; 19.1% in the last month; and 22.0% year-to-date.

    The Salt Lake City, Utah-based company reported net sales of $67.5 million for the fourth quarter ended December 31, 2011, representing a 131% increase from $29.3 million reported in the fourth quarter of 2010.

    Net profit attributable to stockholders came in at $9.9 million, or $0.32 per share, versus $3.4 million, or $0.13 per share, in the comparable quarter of last year.

    Adjusting to exclude the fair value write-up of inventory of iFrogz goods sold in the quarter of $0.9 million, the impairment of the note receivable of $0.4 million, the $1.9 million gain recognized on the deconsolidation of HzO, and the related tax effects of these adjustments to GAAP net income, the Company would have earned $8.6 million, or $0.27 per share.

    “ZAGG performed exceptionally well with record fourth quarter revenue and earnings, as the result of strong holiday sales, record online sales and an expanded SKU presence at our indirect channel to big-box retail partners for both ZAGG and iFrogz branded products,” commented Robert G. Pedersen II, CEO of ZAGG. “With the operating initiatives we have put in place, and our alignment around a product-centric structure, we are building a company that can keep pace with the global growth we are seeing for mobile device accessories in 2012 and beyond.”

    Further boosting investor confidence, ZAGG expects revenue of $250 million and adjusted EBITDA in the range of $55 million – $60 million for the full-year 2012 — ahead of the previous year’s revenue of $179.1 million and adjusted EBITDA of $45.3 million.

    ZAGG shares closed Tuesday trade at $11.02, above the 50-day moving average of $9.26 and below 200-day moving average of $11.18.

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