Source: Reuters.com, SEC Filings.

Recent News

ZAGG shares were boosted yesterday after the Salt Lake City-based company announced a distribution partnership with T-Mobile USA Inc. The accessory maker, known for its popular brands like invisibleSHIELD, ZAGGskins, ZAGGbuds and ZAGGsparq, said its mobile device protection products will be distributed by T-Mobile USA nationwide in the United States.  invisibleSHIELD, ZAGG’s flagship product, will be offered initially for the T-Mobile myTouch 4G Slide smartphone, which is set to be available this month.

“T-Mobile served more than 33 million customers at the end of the first quarter of 2011 and this opportunity will introduce the unique protection provided by ZAGG products to millions of potential new customers for ZAGG,” John W. Melville, ZAGG director of wireless sales, commented in the release.

ZAGG saw shares climb to $16.24 on Wednesday to set a new 52-week high before closing the day at $16.06, up 4.83% from the previous session’s close. About 2.76 million shares have traded hands during the session, versus the 10-day average volume of 2.95 million. The stock is currently above its 50-day moving average of $12.83 and above its 200-day moving average of $9.67. As per current share price, the market capitalization of the Company stands at $393.10 million and it has 24.48million outstanding shares.

Financial Summary

ZAGG posted revenue of $27.0 million for the first quarter ended March 31, 2011, a 207% increase from $8.8 million in the first quarter of 2010, and an 8% sequential decline as compared to $29.3 million in the fourth quarter of 2010.

Gross profit for the first quarter was $13.6 million, compared to $4.9 million in the first quarter of 2010, and $13.4 million in the previous quarter. Gross margin was 51% versus 56% in the same period a year ago and 46% in the previous quarter. The Company attributed the higher gross margins in the first quarter to the high level of online sales, particularly of the ZAGGmate, ZAGG’s tablet computer case with keyboard for the Apple iPad.

The Company posted a first-quarter net income of $3.3 million, or $0.13 per share, up from the year-ago quarter’s net income of $0.8 million, or $0.03 per share, in the first quarter of 2010, and flat sequentially.

Technical Analysis

Source: http://stockcharts.com

ZAGG is presently near its upper Bollinger Band. This suggests that it is at a high level relative to recent action.

The MACD for ZAGG currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

Comparative Analysis

Source: Thomson Financial

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