Budgeting, Planning & Forecasting

Budgeting, Planning & Forecasting

December 23, 2011

Mobile Accessories Company ZAGG Further Increases Revenue Guidance for 2011

ZAGG, which manufactures mobile device accessories, has increased revenue guidance for 2011, expecting its revenues for full year 2011 to exceed $175 million, as against the previously published guidance of $170 million for the year.

This is the fourth time the company has revised their revenue guidance for 2011.

The higher revenue guidance is attributed to the company’s stronger than expected holiday sales for both ZAGG and iFrogz, more SKUs in the retail channel, and strong Web site sales in the fourth quarter, company officials said.

“ZAGG’s broader distribution and expanded product offering in the fourth quarter, along with iFrogz increased SKUs in their largest retailer, combined with continued strong Web site sales following our Cyber Monday (News - Alert) promotions on ZAGG.com, have resulted in higher revenues than we previously forecasted,” said Brandon T. O’Brien, CFO of ZAGG, in a statement.

Earlier in the fourth quarter of 2010, ZAGG published revenue guidance of $95 - $100 million for 2011. The company revisited the guidance on the second quarter 2011 conference call when it raised the expected revenue range to $100 - $110 million.

The third revenue guidance was issued after the acquisition of iFrogz in June 2011 – in the range of $160 – $170 for 2011, and the third quarter conference call stated they expected revenues of $170 million for the year.

“Building on our positive performance in 2011, we intend develop the strong operations platform we already have in place to support the company’s growth in 2012,” said Robert G. Pedersen II, chairman and CEO of ZAGG, in a statement. “We look to establish the preferred brand in our industry, with creative product solutions and targeted global distribution.”

Recently ZAGG announced an agreement with Microcel Corporation to distribute ZAGG's products to retail and carrier channels in the Canadian market. Microcel is a North American distributor of brand name communications accessories and is the largest distributor of wireless accessories in Canada.

Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Jennifer Russell

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