Zagg Inc (NASDAQ:ZAGG) reported weaker-than-expected results for its fourth quarter.
The Salt Lake City-based ZAGG, a leading global mobile lifestyle company, reported net sales of $521.9 million compared to $538.2 million in the prior-year quarter.
Gross profit was 35% compared to 35% last year. Net income was $13.9 million compared to $39.2 million. Diluted earnings per share were $0.48 compared to $1.38. Adjusted EBITDA was $44.7 million compared to $76.4 million
CEO Chris Ahern commented, "While we delivered a record quarter in terms of net sales, our overall performance was below our expectations and represented a difficult finish to a challenging year.
"Over the past 18 months we have strengthened ZAGG’s position as a leader in the mobile lifestyle category through acquisitions and organic product innovation. With InvisibleShield®, mophie®, Gear4®, HALO®, ZAGG®, IFROGZ®, and BRAVEN®, we have created a powerful portfolio of brands that address key consumer needs including protection, power, audio, and productivity."
The Company also announced that its Board of Directors suspended its review of strategic alternatives, which was first publicly announced on August 6, 2019.
Despite a thorough and rigorous process conducted by the Board with BofA Securities’ assistance, during which time the Company reached out to over 60 strategic and financial parties, the Company was unable to finalize a definitive offer at a price that was not significantly below the current trading levels
Shares dropped $2.64, or 49.5%, to $2.69.
Related Stories
