ZAGG (ZAGG) 10-Q 9 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 07, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	ZAGG Inc
Entity Central Index Key	1,296,205
Trading Symbol	ZAGG
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		28,340,783

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 17,745	$ 24,989
Accounts receivable, net of allowances of $474 and $734	73,894	123,220
Inventories	78,891	75,046
Prepaid expenses and other current assets	4,529	4,547
Total current assets	175,059	227,802
Property and equipment, net of accumulated depreciation of $12,979 and $12,540	12,794	13,444
Goodwill	12,272	12,272
Intangible assets, net of accumulated amortization of $69,440 and $66,639	36,443	39,244
Deferred income tax assets	24,084	24,403
Other assets	3,803	3,426
Total assets	264,455	320,591
Current liabilities:
Accounts payable	54,798	96,472
Income tax payable	2,291	2,052
Accrued liabilities	9,214	10,515
Sales returns liability	30,913	32,189
Accrued wages and wage related expenses	7,775	5,652
Deferred revenue	0	315
Line of credit	0	23,475
Current portion of long-term debt, net of deferred loan costs of $141	0	13,922
Total current liabilities	104,991	184,592
Line of credit	22,038	0
Total liabilities	127,029	184,592
Stockholders' equity:
Common stock, $0.001 par value; 100,000 shares authorized; 34,416 and 34,104 shares issued	34	34
Additional paid-in capital	94,134	96,145
Accumulated other comprehensive loss	(59)	(348)
Treasury stock, 6,065 and 6,065 common shares at cost	(37,637)	(37,637)
Retained earnings	80,954	77,805
Total stockholders' equity	137,426	135,999
Total liabilities and stockholders' equity	$ 264,455	$ 320,591

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowances for doubtful accounts	$ 474	$ 734
Accumulated depreciation on property and equipment	12,979	12,540
Accumulated amortization on intangible assets	$ 69,440	66,639
Deferred loan costs, current		$ 141
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	34,416,000	34,104,000
Treasury stock, common shares	6,065,000	6,065,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net sales	$ 112,066	$ 92,946
Cost of sales	74,474	64,340
Gross profit	37,592	28,606
Operating expenses:
Advertising and marketing	2,594	3,006
Selling, general and administrative	24,307	27,054
Transaction costs	0	215
Impairment of intangible asset	0	1,959
Amortization of intangible assets	2,772	3,021
Total operating expenses	29,673	35,255
Income (loss) from operations	7,919	(6,649)
Other income (expense):
Interest expense	(500)	(490)
Other income (expense)	495	(20)
Total other expense	(5)	(510)
Income (loss) before provision for income taxes	7,914	(7,159)
Income tax (provision) benefit	(885)	1,021
Net income (loss)	$ 7,029	$ (6,138)
Earnings (loss) per share attributable to stockholders:
Basic earnings (loss) per share (in usd per share)	$ 0.25	$ (0.22)
Diluted earnings (loss) per share (in usd per share)	$ 0.24	$ (0.22)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 7,029	$ (6,138)
Other comprehensive gain, net of tax:
Foreign currency translation gain	289	288
Total other comprehensive income	289	288
Total comprehensive income (loss)	$ 7,318	$ (5,850)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income (loss)	$ 7,029	$ (6,138)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Stock-based compensation	601	670
Depreciation and amortization	5,030	5,781
Deferred income taxes	322	(238)
Loss on disposal of property and equipment	10	0
Amortization of deferred loan costs	71	60
Impairment of intangible asset	0	1,959
Changes in operating assets and liabilities:
Accounts receivable, net	50,036	23,732
Inventories	(3,367)	(2,828)
Prepaid expenses and other current assets	1,279	153
Income tax payable	200	(858)
Other assets	(385)	1,022
Accounts payable	(41,394)	(33,279)
Accrued liabilities	(1,805)	1,318
Sales returns liability	(6,555)	(2,710)
Accrued wages and wage related expenses	(497)	(300)
Deferred revenue	0	(47)
Other	(847)	0
Net cash provided by (used in) operating activities	9,728	(11,703)
Cash flows from investing activities:
Purchase of property and equipment	(1,933)	(1,820)
Proceeds from disposal of equipment	26	0
Net cash used in investing activities	(1,907)	(1,820)
Cash flows from financing activities:
Proceeds from revolving credit facility	138,899	122,557
Payments on revolving credit facility	(152,711)	(113,233)
Payments on term loan facility	(1,563)	(1,563)
Purchase of treasury stock	0	(1,492)
Payment of withholdings on restricted stock units	0	(240)
Net cash (used in) provided by financing activities	(15,375)	6,029
Effect of foreign currency exchange rates on cash equivalents	310	193
Net decrease in cash and cash equivalents	(7,244)	(7,301)
Cash and cash equivalents at beginning of the period	24,989	11,604
Cash and cash equivalents at end of the period	17,745	4,303
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	478	417
Cash paid during the period for taxes, net	324	76
Supplemental schedule of non-cash investing and financing activities:
Purchase of fixed assets financed through accounts payable	178	676
Withholdings tax on restricted stock units recorded in accrued wages and wage related expenses	$ 2,610	$ 0

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
NATURE OF OPERATIONS AND BASIS OF PRESENTATION	NATURE OF OPERATIONS AND BASIS OF PRESENTATION ZAGG Inc and its subsidiaries (“we,” “us,” “our,” “ZAGG,” or the “Company”) are innovation leaders in mobile tech accessories for smartphones and tablets. For over 10 years, ZAGG has developed creative product solutions that enhance and protect mobile devices for consumers around the world. The Company has an award-winning product portfolio that includes screen protection, power cases, power management, wireless charging, personal audio, mobile keyboards, and cases, sold under the ZAGG®, InvisibleShield®, mophie®, and IFROGZ® brands. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the financial position, the results of operations, and cash flows of the Company for the periods presented. The Company suggests that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s 2017 Annual Report on Form 10-K. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant Accounting Policies The Company’s significant accounting policies are described in Note 1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Except for the changes below, the Company has consistently applied the accounting policies to all periods presented in these consolidated financial statements. Adoption of ASC Topic 606, "Revenue from Contracts with Customers" The Company adopted ASC Topic 606, "Revenue from Contracts with Customers" ("Topic 606") with a date of initial application of January 1, 2018. As a result of this adoption, the Company has changed its accounting policy for revenue recognition as detailed below. The Company applied Topic 606 on January 1, 2018, using the modified retrospective approach, with the cumulative effect of adopting the new standard being recognized in retained earnings at January 1, 2018. Therefore, the prior period comparative information has not been adjusted and continues to be reported under Topic 605. The adoption of Topic 606 resulted in an increase in accounts receivable of $115 ; an increase in prepaid expenses and other current assets of $1,255 for the recognition of the right of return assets; an increase in accrued liabilities of $314 ; an increase in sales return liability of $5,250 for the recognition of the sales return liability on a gross basis and for the change in estimating refund liabilities under Topic 606; a decrease in deferred revenue of $314 ; and a decrease of $3,880 in retained earnings as a cumulative effect of adoption. The largest driver of changes for the adoption of Topic 606 was the change in estimate for price concessions offered to end customers. Under Topic 605, price concessions to end customers were recognized when such incentives were explicitly offered to the end customer, whereas under Topic 606 such incentives are estimated and recorded at the time of the sale of products to the Company’s customers. The accounts that changed under Topic 606 for the condensed consolidated balance sheet, and the condensed income statement as of and for the three months ended March 31, 2018 have been outlined as follows: Condensed Consolidated Balance Sheet changes As Reported Adjustments Balances without adoption of Topic 606 Accounts receivable, net of allowances $ 73,894 $ (145 ) $ 73,749 Prepaid expenses and other current assets 4,529 (719 ) 3,810 Accrued liabilities 9,214 (178 ) 9,036 Sales returns liability 30,913 (2,314 ) 28,599 Deferred revenue — 178 178 Retained earnings 80,954 1,450 82,404 Condensed Consolidated Statements of Operations changes As Reported Adjustments Balances without adoption of Topic 606 Net sales $ 112,066 $ 1,390 $ 113,456 Cost of sales 74,474 (60 ) 74,414 Revenue recognition accounting policy The Company’s revenue is derived from (1) sales of our products through our indirect channel, including retailers and distributors; (2) sales of our products through our direct channel, including www.ZAGG.com and www.mophie.com and our corporate-owned ZAGG-branded store; and (3) from franchise fees derived from the on-boarding of new franchisees. The Company’s revenue is measured based on the amount of consideration we expect to receive, reduced by estimates for sales returns, discounts, and other credits. The observable standalone selling prices of products sold are based on the prices charged to customers and are mutually agreed upon by both parties before any orders are authorized. For substantially all of our sales, revenue is recognized at a point in time when control of the goods is transferred to the customer, which generally occurs upon delivery to the carrier or the customer. For franchise fees, revenue is derived from the sale of licenses, training, inventory and equipment and marketing, among other items. We recognize revenue for performance obligations on a straight-line basis over the franchise term. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Sales returns, discounts and other credits The nature of our contracts gives rise to several types of variable consideration, including sales returns, discounts, and other credits. Certain customers receive credit-based incentives or credits, which are accounted for as variable consideration in the form of credit memos off future purchases from the Company. We estimate these amounts based on the expected amount to be provided to customers and reduce revenue accordingly on the invoice date. We estimate a reserve for sales returns, discounts, and other credits, and record the respective estimated reserve amounts, including a right to return asset when a product is expected to be returned and resold. Historical experience, actual claims, and customer return rights are the key factors used in determining the estimated sales returns, discounts, and other credits. Contract balances The following table provides information about receivables, right of return assets, contract liabilities, and refund liabilities from contracts with customers for the three months ended March 31, 2018 : March 31, 2018 Receivables, which comprises the balance in accounts receivable, net of allowances $ 73,894 Right of return assets, which are included in prepaid expenses and other current assets $ 719 Contract liabilities, which are included in accrued liabilities $ 178 Refund liabilities, which are included in sales return liability $ 26,978 Warranty liabilities, which are included in sales return liability $ 3,935 The current balance of the right of return assets is the expected amount of inventory to be returned that is expected to be resold. The current balance of contract liabilities primarily relates to the advance consideration received from customers for products for which transfer of control has not yet occurred, and therefore recognition of revenue is deferred until the transfer of control. The current balance refund liabilities is the expected amount of sales returns, discounts and other credits from sales that have occurred. Practical expedients and policy elections The Company applies the following practical expedients in its application of Topic 606: • The Company does not adjust the transaction price for significant financing components for periods less than one year. • The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in selling, general, and administrative expenses. • The Company recognizes the cost for shipping and handling as a fulfillment activity after control over products have transferred to the customer. For product sales, our standard shipping terms are FOB shipping point, and we record revenue when the product is shipped, net of estimated returns and discounts. Shipping and handling costs are included in cost of sales. • The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Disaggregation of revenue from contracts with customers In the following tables, revenue from contracts with customers are disaggregated by key product lines, key distribution channels, and key geographic regions. These are disclosed below. The percentage of net sales related to our key product lines for the three months ended March 31, 2018 and 2017 , was approximately: Three Months Ended March 31, 2018 March 31, 2017 Screen Protection 50 % 46 % Power Management 33 % 17 % Power Cases 6 % 24 % Audio 5 % 6 % Keyboards 5 % 6 % Other 1 % 1 % The percentage of net sales related to our key distribution channels for the three months ended March 31, 2018 and 2017 , was approximately: Three Months Ended March 31, 2018 March 31, 2017 Indirect channel 88 % 85 % Website 8 % 11 % Franchisees 4 % 4 % The percentage of net sales related to our key geographic regions for the three months ended March 31, 2018 and 2017 , was approximately: Three Months Ended March 31, 2018 March 31, 2017 United States 82 % 84 % Europe 9 % 10 % Other 9 % 6 % Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires lessees to recognize most leases, including operating leases, on-balance sheet via a right of use asset and lease liability. Lessees are allowed to account for short-term leases (i.e., leases with a term of 12 months or less) off-balance sheet, consistent with current operating lease accounting. A number of other significant changes to lease accounting have been effected through the issuance of this standard. The requirements of the new standard for leases shall be recognized and measured at the beginning of the earliest comparative period presented. When adopted, the Company will be required to adjust equity at the beginning of the earliest comparative period presented, and the other comparative amounts disclosed for each prior period presented in the financial statements, as if the requirements of the new standard had always been applied. The new standard also contains practical expedients which the Company may elect to follow. The new standard is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements, including whether to elect the practical expedients outlined in the new standard.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES At March 31, 2018 and December 31, 2017 , inventories consisted of the following: March 31, 2018 December 31, 2017 Finished goods $ 78,693 $ 74,734 Raw materials 198 312 Total inventories $ 78,891 $ 75,046 Included in prepaid expenses and other current assets were inventory deposits with third-party manufacturers at March 31, 2018 and December 31, 2017 , of $1,783 and $1,906 , respectively.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	INTANGIBLE ASSETS There were no additions to and no impairments of long-lived intangible assets for the three months ended March 31, 2018 . Additionally, there were no additions to long-lived intangible assets for the three months ended March 31, 2017 . The following table summarizes the impairments to gross long-lived intangible assets for the three months ended March 31, 2017 : Gross balance at December 31, 2016 $ 108,659 Impairment loss on patent (2,777 ) Gross balance at March 31, 2017 $ 105,882 On April 11, 2017 , the Company received a final court order stating that the claims of one of its patents were either not patentable or canceled. Accordingly, management determined that the patent’s carrying value was not recoverable through future cash flows and was impaired as of March 31, 2017 . Consequently, for the three months ended March 31, 2017 , the Company recorded an impairment loss consisting of a reduction of gross carrying amount of $2,777 , accumulated amortization of $818 , and net carrying value of $1,959 to reduce the net carrying value of the canceled patent to $0 . Long-lived intangible assets, net of accumulated amortization as of March 31, 2018 and December 31, 2017 , were as follows: March 31, 2018 December 31, 2017 Customer relationships $ 8,090 $ 9,259 Trade names 17,055 17,854 Patents and technology 10,239 10,981 Non-compete agreements 1,048 1,137 Other 11 13 Total amortizable intangible assets $ 36,443 $ 39,244 The total weighted average useful lives of amortizable long-lived intangible assets as of March 31, 2018 and December 31, 2017 , was 8.1 years.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES For interim periods, the tax provision is determined utilizing an estimate of the Company’s annual effective tax rate adjusted for discrete items, if any. The Company’s effective tax rate was 11% and 14% for the three months ended March 31, 2018 and 2017 , respectively. The decrease in the effective tax rate was due to several factors including but not limited to a change in the federal statutory rate from 35% to 21% , a change to book income in the first quarter of 2018 compared to a book loss in the first quarter of 2017 , and an increase to income in foreign jurisdictions. The Company’s effective tax rate will generally differ from the U.S. Federal statutory rate of 21% , due to state taxes, permanent items, the Company’s global tax strategy, and the inclusion of global intangible low taxed income and the corresponding foreign tax credit.

Debt and Line of Credit

Debt and Line of Credit	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
DEBT AND LINE OF CREDIT	DEBT AND LINE OF CREDIT Long-term debt, net as of March 31, 2018 and December 31, 2017 , was as follows: March 31, 2018 December 31, 2017 Line of credit $ 22,038 $ 23,475 Long-term debt, net of deferred loan costs of $141 — 13,922 Total debt outstanding 22,038 37,397 Current portion of line of credit and long-term debt, net of deferred loan costs of $141 — 37,397 Total long-term debt outstanding $ 22,038 $ — On April 12, 2018 , the Company entered into an Amended and Restated Credit and Security Agreement (the “New Credit Agreement”) with KeyBank National Association, as Administrative Agent, Swing Line Lender and Issuing Lender, KeyBanc Capital Markets Inc., as Sole Lead Arranger and Sole Book Runner, and other members of the lender group. The New Credit Agreement consists of an $85,000 secured revolving credit facility (the “Revolver”), which is not subject to borrowing base limitations. Proceeds from the Revolver were used to fully retire the term loan (with the associated $125 of remaining deferred loan costs to be expensed as of the New Credit Agreement effective date) and thus the Revolver is the only credit instrument effective April 12, 2018. In addition, at the Company’s option, up to $40,000 of the Revolver may be made available for the issuance of letters of credit. The Revolver initially bears interest at an annual rate, at the Company’s option, of (i) the Base Rate (as defined in the Credit Agreement) plus a margin of 0.25% to 1.375% based on the prior quarter-end Leverage Ratio or (ii) the Eurodollar Rate (as defined in the Credit Agreement) plus a margin of 1.25% to 2.375% based on the prior quarter-end Leverage Ratio. The Revolver matures April 11, 2023 , subject to early termination in the event of default. In addition, the Company is required to pay a monthly Applicable Commitment Fee Rate (as defined in the New Credit Agreement) that can fluctuate between 0.175% and 0.275% based on the Leverage Ratio (as defined in the New Credit Agreement). The commitment fee is calculated monthly using the Maximum Revolving Amount (as defined in the New Credit Agreement) at the end of each calendar month, minus the Revolving Credit Exposure (exclusive of the Swing Line Exposure) (each as defined in the New Credit Agreement) at the end of such day, multiplied by the Applicable Commitment Fee Rate in effect on such day divided by three hundred sixty (360). The monthly commitment fee is payable quarterly in arrears, commencing on July 1, 2018 and continuing on each regularly scheduled payment date thereafter. The New Credit Agreement contains customary representations and warranties and restrictive covenants. The New Credit Agreement also contains affirmative and negative covenants requiring, among other things, the Company to meet certain financial ratio tests and to provide certain information to the lenders. The New Credit Agreement also includes financial maintenance covenants that require compliance with a Leverage Ratio and a Fixed Charge Coverage Ratio (each as defined in the New Credit Agreement), tested at the end of each fiscal quarter commencing with the fiscal quarter ending June 30, 2018 . The New Credit Agreement also contains customary events of default. If an event of default occurs, the lenders under the Credit Agreement would be entitled to take various actions, including the acceleration of amounts due thereunder and all other actions permitted to be taken by a secured creditor. As part of the New Credit Agreement, the lockbox arrangement requirement in the prior agreement was terminated and thus the Company now has full dominion of cash upon receipt from customers. Because of the lockbox arrangement in the prior agreement, amounts outstanding under the Revolver were classified as a current liability because cash receipts were required to be automatically swept against the Revolver. Because the current Credit Agreement does not have a lockbox arrangement and the Revolver does not mature until 2023, the Revolver is classified as a non-current liability.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION During the three months ended March 31, 2018 and 2017 the Company granted 81 and 311 restricted stock units, respectively. The restricted stock units granted during the three months ended March 31, 2018 and 2017 were estimated to have a weighted-average fair value per share of $14.50 and $6.66 , respectively. The fair value of the restricted stock units granted is based on the closing share price of the Company’s common stock on the date of grant. The restricted stock units vest annually on a straight-line basis over a nine-month (annual board of directors’ grant) to three-year vesting term, depending on the terms of the individual grant. As part of the 311 restricted stock units granted during the three months ended March 31, 2017 , the Company granted 264 restricted stock units, to certain executives and employees of the Company where vesting is linked to specific performance criterion. These performance-based restricted stock units only vest upon the (1) Company’s achievement of specified thresholds of net sales, Adjusted EBITDA, or specific goals for the individual executive, and (2) continued employment through the applicable vesting date. The estimated fair value of the restricted stock units is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the award. During the three months ended March 31, 2018 and 2017 , the Company recorded stock-based compensation expense related to restricted stock units of $601 , and $670 , respectively, which is included as a component of selling, general, and administrative expense on the condensed consolidated statement of operations. During the three months ended March 31, 2018 and 2017 , certain ZAGG employees elected to receive a net amount of shares upon the vesting of restricted stock unit grants in exchange for the Company paying up to the maximum statutory withholding amount of the employees’ tax liabilities for the fair value of the award on the vesting date. This resulted in the Company recording $2,610 in accrued wages and wage related expenses and paying $240 reflected as a reduction of additional paid-in capital, respectively.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER SHARE	EARNINGS (LOSS) PER SHARE Basic earnings (loss) per common share excludes dilution and is computed by dividing net earnings (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per common share reflects the potential dilution that could occur if stock options and restricted stock, or other common stock equivalents were exercised or converted into common stock. The dilutive effect of stock options or other common stock equivalents is calculated using the treasury stock method. The following is a reconciliation of the numerator and denominator used to calculate basic earnings (loss) per share and diluted earnings (loss) per share for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, 2018 March 31, 2017 Net income (loss) $ 7,029 $ (6,138 ) Weighted average shares outstanding: Basic 28,209 28,059 Dilutive effect of restricted stock units and warrants 484 — Diluted 28,693 28,059 Earnings (loss) per share: Basic $ 0.25 $ (0.22 ) Diluted $ 0.24 $ (0.22 ) For the three months ended March 31, 2018 , 114 restricted stock units used to purchase shares of common stock were not considered in calculating diluted earnings per share as their effect would have been anti-dilutive. For the three months ended March 31, 2017 , 860 restricted stock units were not considered in calculating diluted loss per share because the company was in a loss position and, therefore, the effect would have been anti-dilutive.

Treasury Stock

Treasury Stock	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
TREASURY STOCK	TREASURY STOCK During the fourth quarter of 2015, the Company’s board of directors authorized the repurchase of up to $20,000 of the Company’s outstanding common stock with no expiration date. As of March 31, 2018 and December 31, 2017 , a total of $17,558 remained authorized under the stock repurchase program. For the three months ended March 31, 2018 , no share repurchases occurred. For the three months ended March 31, 2017 , the Company repurchased 234 shares of the Company's common stock. Cash consideration paid for the noted share repurchases was $1,492 , which included commissions paid to brokers of $9 . For the three months ended March 31, 2017 , the weighted average price per share was $6.35 . The consideration paid has been recorded within stockholders’ equity in the condensed consolidated balance sheet.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases office and warehouse space, office equipment, and a retail store location under operating leases that expire through 2025 . Future minimum rental payments required under the operating leases at March 31, 2018 , were as follows: Remaining 2018 $ 2,158 2019 1,610 2020 1,541 2021 1,467 2022 1,498 Thereafter 1,119 Total operating lease commitments $ 9,393 For the three months ended March 31, 2018 and 2017 , rent expense was $728 and $685 , respectively. Rent expense was recognized on a basis which approximates straight-line over the lease term and was recorded as a component of selling, general and administrative expense on the condensed consolidated statement of operations. Commercial Litigation ZAGG Inc and mophie, Inc. v. Anker Technology Co. Ltd. and Fantasia Trading LLC, United States District Court for the Central District of California, Case No. 8:17-CV-2193-DOC-DFM (the “Anker Lawsuit”). On December 15, 2017, ZAGG and mophie filed the Anker Lawsuit alleging that Anker Technology Co. Ltd. (“Anker”) and Fantasia Trading LLC (“Fantasia”) infringe U.S. Patent Nos. 8,971,039, 9,077,013, 9,088,028, 9,088,029, 9,172,070, and 9,406,913 in connection with protective battery cases for smartphones. The Anker products accused of infringement include Anker’s Ultra Slim Extended Battery Case for iPhone 6 / 6s (4.7 inch) with 2850mAh capacity; Premium Extended Battery Case for iPhone 6 / 6s (4.7 inch) with 3100mAh Capacity; PowerCore Case for iPhone 7 (4.7 inch), 80% Extra Battery; and PowerCore Case for iPhone 7 (4.7 inch), 95% Extra Battery. The complaint filed by ZAGG and mophie seeks monetary damages and an injunction against Anker. On March 12, 2018, Anker and Fantasia filed answers and counterclaims in the lawsuit. In their answers, Anker and Fantasia denied infringement of any valid claim and asserted counterclaims for non-infringement and invalidity of the patents at issue. The Company disputes these contentions and will defend the claims and otherwise respond to the allegations. This matter is not expected to have a material adverse effect on the Company’s financial position, results of operations, or liquidity. SEC Investigation In the fourth quarter of 2012, the Company received requests to provide documentation and information to the staff of the SEC in connection with an investigation being conducted by the SEC's Salt Lake City office. The Company believes the investigation includes a review of the facts and circumstances surrounding former Chief Executive Officer Robert Pedersen's pledge and subsequent sale of Company shares and the fact that such pledges and sales were not disclosed in the Company's 2011 10-K filed on March 15, 2012, or 2012 Proxy filed on April 27, 2012. The Company responded to these requests and is cooperating with the staff although there has been no resolution to date. Other Litigation The Company is not a party to any other material litigation or claims at this time. While the Company currently believes that the amount of any ultimate probable loss for known matters would not be material to the Company’s financial condition, the outcome of these actions is inherently difficult to predict. In the event of an adverse outcome, the ultimate potential loss could have a material adverse effect on the Company’s financial condition or results of operations in a particular period. The Company establishes reserves when a particular contingency is probable and estimable. The Company has not accrued for any loss as of March 31, 2018 , in the condensed consolidated financial statements as the Company does not consider a loss to be probable or estimable. The Company faces contingencies that are reasonably possible to occur; however, the reasonably possible exposure to losses cannot currently be estimated.

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2018
Risks and Uncertainties [Abstract]
CONCENTRATIONS	CONCENTRATIONS Concentration of credit risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. The Company places its cash with high credit quality financial institutions. The Company maintains its cash in bank deposit accounts, which, at times, exceed federally insured limits. The Company has not experienced any losses in cash accounts for the three months ended March 31, 2018 and 2017 . At March 31, 2018 and December 31, 2017 , two separate customers exceeded 10% of the balance of accounts receivable, as follows: March 31, 2018 December 31, 2017 Superior Communications, Inc. (“Superior”) 42 % 31 % Best Buy Co., Inc. (“Best Buy”) 14 % 18 % No other customer account balances were more than 10% of accounts receivable at March 31, 2018 or December 31, 2017 . If one or more of the Company’s significant customers were to become insolvent or were otherwise unable to pay for the products provided, it would have a material adverse effect on the Company’s financial condition and results of operations. Concentration of suppliers We do not directly manufacture any of our products, rather, we employ various third party manufacturing partners in the United States and Asia to perform these services on our behalf. The services employed by these third parties include the selection of sub-suppliers that provide raw materials and other components used in the manufacturing process. We have endeavored to use common components and readily available raw materials in the design of our products that can be sourced from multiple sub-suppliers. However, raw film used in our InvisibleShield film and InvisibleShield On-Demand (“ISOD”) products has been produced by a single supplier for many years. Our film supplier has contractually agreed to not sell the raw materials to any of our competitors. Below is a high-level summary by product category of the manufacturing sources used by the Company: • Screen Protection – Our screen product line is comprised of sales of InvisibleShield glass products, InvisibleShield film products, and ISOD film blanks. InvisibleShield glass products are sourced from factories in Asia with protective glass expertise, each of which uses a number of sub-suppliers for raw materials and other components. Our InvisibleShield film and ISOD products are sourced through our third-party logistics partner, who purchases the raw film inventory from a single supplier (as discussed above). • Battery Cases and Power Management – Our battery case and power management product lines consists of power products that are designed to provide on-the-go power and wireless charging for tablets, smartphones, laptops, cameras, and virtually all other electronic mobile devices. Our power products are sourced from factories in Asia with battery expertise, each of which uses a number of sub-suppliers for raw materials and other components. • Keyboards – Our keyboard product line consists of (1) device specific keyboards designed to fit individual tablets produced by original equipment manufacturers and (2) keyboards that are designed to be device agnostic and can be used on virtually any mobile device. Our keyboard products are sourced from factories in Asia with keyboard expertise, each of which uses a number of sub-suppliers for raw materials and other components. • Audio – Our audio product line consists of earbuds and headphones that are designed to be compatible with virtually all electronic mobile devices. Our audio products are sourced from factories in Asia with audio expertise, each of which uses a number of sub-suppliers for raw materials and other components. Our product and operations teams work closely with suppliers from initial product development and throughout the manufacturing process to ensure that (1) the supplier understands, and will build according to, the product specifications, (2) appropriate quality is maintained for the finished goods and for all sub-components, and (3) the supplier can meet our supply needs. Concentration of net sales For the three months ended March 31, 2018 , Superior accounted for over 10% of net sales , and for the three months ended March 31, 2017 , Superior and Best Buy accounted for over 10% of net sales , as follows: Three Months Ended March 31, 2018 March 31, 2017 Superior 29 % 27 % Best Buy 8 % 12 % For the three months ended March 31, 2018 and 2017 , no other customers accounted for greater than 10% of net sales . Although we have contracts in place governing our relationships with our retail distribution customers (“retailers”), the contracts are not long-term and all our retailers generally purchase from us on a purchase order basis. As a result, these retailers generally may, with little or no notice or penalty, cease ordering and selling our products, or materially reduce their orders. If any of these retailers cease selling our products, slow their rate of purchase of our products, or decrease the number of products they purchase, our results of operations could be adversely affected. Concentration of region The percentage of net sales by geographic region for the three months ended March 31, 2018 and 2017 , was approximately: Three Months Ended March 31, 2018 March 31, 2017 United States 82 % 84 % Europe 9 % 10 % Other 9 % 6 %

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS As described in Note 5, “Debt and Line of Credit”, the Company entered into the New Credit Agreement on April 12, 2018 .

Nature of Operations and Basi18

Nature of Operations and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires lessees to recognize most leases, including operating leases, on-balance sheet via a right of use asset and lease liability. Lessees are allowed to account for short-term leases (i.e., leases with a term of 12 months or less) off-balance sheet, consistent with current operating lease accounting. A number of other significant changes to lease accounting have been effected through the issuance of this standard. The requirements of the new standard for leases shall be recognized and measured at the beginning of the earliest comparative period presented. When adopted, the Company will be required to adjust equity at the beginning of the earliest comparative period presented, and the other comparative amounts disclosed for each prior period presented in the financial statements, as if the requirements of the new standard had always been applied. The new standard also contains practical expedients which the Company may elect to follow. The new standard is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements, including whether to elect the practical expedients outlined in the new standard. Adoption of ASC Topic 606, "Revenue from Contracts with Customers" The Company adopted ASC Topic 606, "Revenue from Contracts with Customers" ("Topic 606") with a date of initial application of January 1, 2018. As a result of this adoption, the Company has changed its accounting policy for revenue recognition as detailed below. The Company applied Topic 606 on January 1, 2018, using the modified retrospective approach, with the cumulative effect of adopting the new standard being recognized in retained earnings at January 1, 2018. Therefore, the prior period comparative information has not been adjusted and continues to be reported under Topic 605. The adoption of Topic 606 resulted in an increase in accounts receivable of $115 ; an increase in prepaid expenses and other current assets of $1,255 for the recognition of the right of return assets; an increase in accrued liabilities of $314 ; an increase in sales return liability of $5,250 for the recognition of the sales return liability on a gross basis and for the change in estimating refund liabilities under Topic 606; a decrease in deferred revenue of $314 ; and a decrease of $3,880 in retained earnings as a cumulative effect of adoption. The largest driver of changes for the adoption of Topic 606 was the change in estimate for price concessions offered to end customers. Under Topic 605, price concessions to end customers were recognized when such incentives were explicitly offered to the end customer, whereas under Topic 606 such incentives are estimated and recorded at the time of the sale of products to the Company’s customers. The accounts that changed under Topic 606 for the condensed consolidated balance sheet, and the condensed income statement as of and for the three months ended March 31, 2018 have been outlined as follows: Condensed Consolidated Balance Sheet changes As Reported Adjustments Balances without adoption of Topic 606 Accounts receivable, net of allowances $ 73,894 $ (145 ) $ 73,749 Prepaid expenses and other current assets 4,529 (719 ) 3,810 Accrued liabilities 9,214 (178 ) 9,036 Sales returns liability 30,913 (2,314 ) 28,599 Deferred revenue — 178 178 Retained earnings 80,954 1,450 82,404 Condensed Consolidated Statements of Operations changes As Reported Adjustments Balances without adoption of Topic 606 Net sales $ 112,066 $ 1,390 $ 113,456 Cost of sales 74,474 (60 ) 74,414
Revenue Recognition	Revenue recognition accounting policy The Company’s revenue is derived from (1) sales of our products through our indirect channel, including retailers and distributors; (2) sales of our products through our direct channel, including www.ZAGG.com and www.mophie.com and our corporate-owned ZAGG-branded store; and (3) from franchise fees derived from the on-boarding of new franchisees. The Company’s revenue is measured based on the amount of consideration we expect to receive, reduced by estimates for sales returns, discounts, and other credits. The observable standalone selling prices of products sold are based on the prices charged to customers and are mutually agreed upon by both parties before any orders are authorized. For substantially all of our sales, revenue is recognized at a point in time when control of the goods is transferred to the customer, which generally occurs upon delivery to the carrier or the customer. For franchise fees, revenue is derived from the sale of licenses, training, inventory and equipment and marketing, among other items. We recognize revenue for performance obligations on a straight-line basis over the franchise term. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Sales returns, discounts and other credits The nature of our contracts gives rise to several types of variable consideration, including sales returns, discounts, and other credits. Certain customers receive credit-based incentives or credits, which are accounted for as variable consideration in the form of credit memos off future purchases from the Company. We estimate these amounts based on the expected amount to be provided to customers and reduce revenue accordingly on the invoice date. We estimate a reserve for sales returns, discounts, and other credits, and record the respective estimated reserve amounts, including a right to return asset when a product is expected to be returned and resold. Historical experience, actual claims, and customer return rights are the key factors used in determining the estimated sales returns, discounts, and other credits. Contract balances The following table provides information about receivables, right of return assets, contract liabilities, and refund liabilities from contracts with customers for the three months ended March 31, 2018 : March 31, 2018 Receivables, which comprises the balance in accounts receivable, net of allowances $ 73,894 Right of return assets, which are included in prepaid expenses and other current assets $ 719 Contract liabilities, which are included in accrued liabilities $ 178 Refund liabilities, which are included in sales return liability $ 26,978 Warranty liabilities, which are included in sales return liability $ 3,935 The current balance of the right of return assets is the expected amount of inventory to be returned that is expected to be resold. The current balance of contract liabilities primarily relates to the advance consideration received from customers for products for which transfer of control has not yet occurred, and therefore recognition of revenue is deferred until the transfer of control. The current balance refund liabilities is the expected amount of sales returns, discounts and other credits from sales that have occurred. Practical expedients and policy elections The Company applies the following practical expedients in its application of Topic 606: • The Company does not adjust the transaction price for significant financing components for periods less than one year. • The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in selling, general, and administrative expenses. • The Company recognizes the cost for shipping and handling as a fulfillment activity after control over products have transferred to the customer. For product sales, our standard shipping terms are FOB shipping point, and we record revenue when the product is shipped, net of estimated returns and discounts. Shipping and handling costs are included in cost of sales. • The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.

Nature of Operations and Basi19

Nature of Operations and Basis of Presentation Nature of Operations and Basis of Presentation (Tables)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	The accounts that changed under Topic 606 for the condensed consolidated balance sheet, and the condensed income statement as of and for the three months ended March 31, 2018 have been outlined as follows: Condensed Consolidated Balance Sheet changes As Reported Adjustments Balances without adoption of Topic 606 Accounts receivable, net of allowances $ 73,894 $ (145 ) $ 73,749 Prepaid expenses and other current assets 4,529 (719 ) 3,810 Accrued liabilities 9,214 (178 ) 9,036 Sales returns liability 30,913 (2,314 ) 28,599 Deferred revenue — 178 178 Retained earnings 80,954 1,450 82,404 Condensed Consolidated Statements of Operations changes As Reported Adjustments Balances without adoption of Topic 606 Net sales $ 112,066 $ 1,390 $ 113,456 Cost of sales 74,474 (60 ) 74,414
Contract with Customer, Asset and Liability	The following table provides information about receivables, right of return assets, contract liabilities, and refund liabilities from contracts with customers for the three months ended March 31, 2018 : March 31, 2018 Receivables, which comprises the balance in accounts receivable, net of allowances $ 73,894 Right of return assets, which are included in prepaid expenses and other current assets $ 719 Contract liabilities, which are included in accrued liabilities $ 178 Refund liabilities, which are included in sales return liability $ 26,978 Warranty liabilities, which are included in sales return liability $ 3,935
Disaggregation of Revenue	The percentage of net sales related to our key product lines for the three months ended March 31, 2018 and 2017 , was approximately: Three Months Ended March 31, 2018 March 31, 2017 Screen Protection 50 % 46 % Power Management 33 % 17 % Power Cases 6 % 24 % Audio 5 % 6 % Keyboards 5 % 6 % Other 1 % 1 % The percentage of net sales related to our key distribution channels for the three months ended March 31, 2018 and 2017 , was approximately: Three Months Ended March 31, 2018 March 31, 2017 Indirect channel 88 % 85 % Website 8 % 11 % Franchisees 4 % 4 % The percentage of net sales related to our key geographic regions for the three months ended March 31, 2018 and 2017 , was approximately: Three Months Ended March 31, 2018 March 31, 2017 United States 82 % 84 % Europe 9 % 10 % Other 9 % 6 %

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Schedule of inventories	At March 31, 2018 and December 31, 2017 , inventories consisted of the following: March 31, 2018 December 31, 2017 Finished goods $ 78,693 $ 74,734 Raw materials 198 312 Total inventories $ 78,891 $ 75,046

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in gross long-lived intangible assets	he following table summarizes the impairments to gross long-lived intangible assets for the three months ended March 31, 2017 : Gross balance at December 31, 2016 $ 108,659 Impairment loss on patent (2,777 ) Gross balance at March 31, 2017 $ 105,882
Schedule of long-lived intangible assets, net of amortization	Long-lived intangible assets, net of accumulated amortization as of March 31, 2018 and December 31, 2017 , were as follows: March 31, 2018 December 31, 2017 Customer relationships $ 8,090 $ 9,259 Trade names 17,055 17,854 Patents and technology 10,239 10,981 Non-compete agreements 1,048 1,137 Other 11 13 Total amortizable intangible assets $ 36,443 $ 39,244

Debt and Line of Credit (Tables

Debt and Line of Credit (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of long-term debt, net	Long-term debt, net as of March 31, 2018 and December 31, 2017 , was as follows: March 31, 2018 December 31, 2017 Line of credit $ 22,038 $ 23,475 Long-term debt, net of deferred loan costs of $141 — 13,922 Total debt outstanding 22,038 37,397 Current portion of line of credit and long-term debt, net of deferred loan costs of $141 — 37,397 Total long-term debt outstanding $ 22,038 $ —

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Schedule of reconciliation of the numerator and denominator used to calculate basic earnings (loss) per share and diluted earnings (loss) per share	The following is a reconciliation of the numerator and denominator used to calculate basic earnings (loss) per share and diluted earnings (loss) per share for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, 2018 March 31, 2017 Net income (loss) $ 7,029 $ (6,138 ) Weighted average shares outstanding: Basic 28,209 28,059 Dilutive effect of restricted stock units and warrants 484 — Diluted 28,693 28,059 Earnings (loss) per share: Basic $ 0.25 $ (0.22 ) Diluted $ 0.24 $ (0.22 )

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum rental payments required under the operating leases	Future minimum rental payments required under the operating leases at March 31, 2018 , were as follows: Remaining 2018 $ 2,158 2019 1,610 2020 1,541 2021 1,467 2022 1,498 Thereafter 1,119 Total operating lease commitments $ 9,393

Concentrations (Tables)

Concentrations (Tables)	3 Months Ended
	Mar. 31, 2018
Risks and Uncertainties [Abstract]
Schedules of concentration of accounts receivable and sales	For the three months ended March 31, 2018 , Superior accounted for over 10% of net sales , and for the three months ended March 31, 2017 , Superior and Best Buy accounted for over 10% of net sales , as follows: Three Months Ended March 31, 2018 March 31, 2017 Superior 29 % 27 % Best Buy 8 % 12 % At March 31, 2018 and December 31, 2017 , two separate customers exceeded 10% of the balance of accounts receivable, as follows: March 31, 2018 December 31, 2017 Superior Communications, Inc. (“Superior”) 42 % 31 % Best Buy Co., Inc. (“Best Buy”) 14 % 18 %
Schedule of percentage of sales by geographic region	The percentage of net sales by geographic region for the three months ended March 31, 2018 and 2017 , was approximately: Three Months Ended March 31, 2018 March 31, 2017 United States 82 % 84 % Europe 9 % 10 % Other 9 % 6 %

Nature of Operations and Basi26

Nature of Operations and Basis of Presentation - Adoption of ASC Topic 606, "Revenue from Contracts with Customers" Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net of allowances	$ 73,894		$ 123,220
Prepaid expenses and other current assets	4,529		4,547
Accrued liabilities	(9,214)		(10,515)
Sales returns liability	(30,913)		(32,189)
Deferred revenue	0		(315)
Retained earnings	(80,954)		$ (77,805)
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net of allowances	(145)	$ 115
Prepaid expenses and other current assets	(719)	1,255
Accrued liabilities	178	(314)
Sales returns liability	2,314	(5,250)
Deferred revenue	(178)	314
Retained earnings	$ (1,450)	$ 3,880

Nature of Operations and Basi27

Nature of Operations and Basis of Presentation - Accounts changed under Topic 606 (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018	Dec. 31, 2017
Condensed Consolidated Balance Sheet changes
Accounts receivable, net of allowances	$ 73,894			$ 123,220
Prepaid expenses and other current assets	4,529			4,547
Accrued liabilities	9,214			10,515
Sales returns liability	30,913			32,189
Deferred revenue	0			315
Retained earnings	80,954			$ 77,805
Condensed Consolidated Statements of Operations changes
Net sales	112,066	$ 92,946
Cost of sales	74,474	$ 64,340
Calculated under Revenue Guidance in Effect before Topic 606
Condensed Consolidated Balance Sheet changes
Accounts receivable, net of allowances	73,749
Prepaid expenses and other current assets	3,810
Accrued liabilities	9,036
Sales returns liability	28,599
Deferred revenue	178
Retained earnings	82,404
Condensed Consolidated Statements of Operations changes
Net sales	113,456
Cost of sales	74,414
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
Condensed Consolidated Balance Sheet changes
Accounts receivable, net of allowances	(145)		$ 115
Prepaid expenses and other current assets	(719)		1,255
Accrued liabilities	(178)		314
Sales returns liability	(2,314)		5,250
Deferred revenue	178		(314)
Retained earnings	1,450		$ (3,880)
Condensed Consolidated Statements of Operations changes
Net sales	1,390
Cost of sales	$ (60)

Nature of Operations and Basi28

Nature of Operations and Basis of Presentation - Contract Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Receivables, which comprises the balance in accounts receivable, net of allowances	$ 73,894	$ 123,220
Right of return assets, which are included in prepaid expenses and other current assets	719
Contract liabilities, which are included in accrued liabilities	178
Refund liabilities, which are included in sales return liability	26,978
Warranty liabilities, which are included in sales return liability	$ 3,935

Nature of Operations and Basi29

Nature of Operations and Basis of Presentation - Percentage of Net Sales by Product (Details) - Product Concentration Risk - Revenue from Contract with Customer	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Screen Protection
Concentration Risk [Line Items]
Percentage of sales	50.00%	46.00%
Power Management
Concentration Risk [Line Items]
Percentage of sales	33.00%	17.00%
Power Cases
Concentration Risk [Line Items]
Percentage of sales	6.00%	24.00%
Audio
Concentration Risk [Line Items]
Percentage of sales	5.00%	6.00%
Keyboards
Concentration Risk [Line Items]
Percentage of sales	5.00%	6.00%
Other
Concentration Risk [Line Items]
Percentage of sales	1.00%	1.00%

Nature of Operations and Basi30

Nature of Operations and Basis of Presentation - Percentage of Net Sales by Distribution Channel (Details) - Revenue from Contract with Customer - Distribution Channel Concentration Risk	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Indirect channel
Concentration Risk [Line Items]
Percentage of sales	88.00%	85.00%
Website
Concentration Risk [Line Items]
Percentage of sales	8.00%	11.00%
Franchisees
Concentration Risk [Line Items]
Percentage of sales	4.00%	4.00%

Nature of Operations and Basi31

Nature of Operations and Basis of Presentation - Percentage of Net Sales by Key Geographic Regions (Details) - Revenue from Contract with Customer - Geographic Concentration Risk	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
United States
Concentration Risk [Line Items]
Percentage of sales	82.00%	84.00%
Europe
Concentration Risk [Line Items]
Percentage of sales	9.00%	10.00%
Other
Concentration Risk [Line Items]
Percentage of sales	9.00%	6.00%

Inventories - Schedule Of Inven

Inventories - Schedule Of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Finished goods	$ 78,693	$ 74,734
Raw materials	198	312
Total inventories	$ 78,891	$ 75,046

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventory deposits with third-party manufacturers	$ 1,783	$ 1,906

Intangible Assets - Changes in

Intangible Assets - Changes in Gross Long-lived Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
December 31, 2016		$ 108,659
Impairment loss on patent	$ 0	(2,777)
March 31, 2017		$ 105,882

Intangible Assets - Long-lived

Intangible Assets - Long-lived Intangible Assets, Net of Amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangible assets	$ 36,443	$ 39,244
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangible assets	8,090	9,259
Trade names
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangible assets	17,055	17,854
Patents and technology
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangible assets	10,239	10,981
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangible assets	1,048	1,137
Other
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangible assets	$ 11	$ 13

Intangible Assets - Narrative (

Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Additions to long-lived intangible assets	$ 0	$ 0
Impairment loss on patent	$ 0	2,777,000
Weighted average useful lives of amortizable intangible assets	8 years 1 month 3 days		8 years 25 days
Canceled Patent
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization written off		818,000
Impairment of finite-lived intangible asset		1,959,000
Finite-lived intangible assets, net		$ 0

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Effective tax rate	11.00%	14.00%

Debt and Line of Credit (Detail

Debt and Line of Credit (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Line of credit	$ 22,038	$ 23,475
Long-term debt, net of deferred loan costs of $141	0	13,922
Total debt outstanding	22,038	37,397
Current portion of line of credit and long-term debt, net of deferred loan costs of $141	0	(37,397)
Total long-term debt outstanding	$ 22,038	0
Deferred loan costs, current		$ 141

Debt and Line of Credit - Narra

Debt and Line of Credit - Narrative (Details) - USD ($)	Apr. 12, 2018	Dec. 31, 2017
Line of Credit Facility [Line Items]
Deferred loan costs, current		$ 141,000
Subsequent Event | New Credit Agreement | Line of Credit
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 85,000,000
Deferred loan costs, current	125,000
Subsequent Event | New Credit Agreement | Letter of Credit
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 40,000,000
Minimum | Subsequent Event | New Credit Agreement | Line of Credit
Line of Credit Facility [Line Items]
Line of credit facility, commitment fee percentage	0.175%
Minimum | Base Rate | Subsequent Event | New Credit Agreement | Line of Credit
Line of Credit Facility [Line Items]
Line of credit facility, interest rate	0.25%
Minimum | Eurodollar | Subsequent Event | New Credit Agreement | Line of Credit
Line of Credit Facility [Line Items]
Line of credit facility, interest rate	1.25%
Maximum | Subsequent Event | New Credit Agreement | Line of Credit
Line of Credit Facility [Line Items]
Line of credit facility, commitment fee percentage	0.275%
Maximum | Base Rate | Subsequent Event | New Credit Agreement | Line of Credit
Line of Credit Facility [Line Items]
Line of credit facility, interest rate	1.375%
Maximum | Eurodollar | Subsequent Event | New Credit Agreement | Line of Credit
Line of Credit Facility [Line Items]
Line of credit facility, interest rate	2.375%

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Stock-Based Compensation (Textual)
Adjustments to additional paid-in capital	$ 2,610	$ 240
Restricted stock units
Stock-Based Compensation (Textual)
Restricted stock granted	81	311
Weighted-average fair value of restricted stock per share (in dollars per share)	$ 14.50	$ 6.66
Maximum | Restricted stock units
Stock-Based Compensation (Textual)
Term of restricted stock vested	3 years
Minimum | Restricted stock units
Stock-Based Compensation (Textual)
Term of restricted stock vested	9 months
Selling, general, and administrative expense | Restricted stock units
Stock-Based Compensation (Textual)
Stock-based compensation expense	$ 601	$ 670
Employees | Restricted stock units
Stock-Based Compensation (Textual)
Shares granted in excess of original grant		264

Earnings (Loss) Per Share (Deta

Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income (loss)	$ 7,029	$ (6,138)
Weighted average shares outstanding:
Basic (in shares)	28,209	28,059
Dilutive effect of restricted stock units and warrants (in shares)	484	0
Diluted (in shares)	28,693	28,059
Earnings (loss) per share:
Basic (in usd per share)	$ 0.25	$ (0.22)
Diluted (in usd per share)	$ 0.24	$ (0.22)

Earnings (Loss) Per Share - Nar

Earnings (Loss) Per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Restricted stock units	114	860

Treasury Stock (Details)

Treasury Stock (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2015
Equity [Abstract]
Authorized stock repurchase amount				$ 20,000,000
Remaining amount authorized under stock repurchase program	$ 17,558,000		$ 17,558,000
Treasury stock common, repurchases	0	234,000
Cash consideration paid for purchase of common stock	$ 0	$ 1,492,000
Commissions paid to brokers		$ 9,000
Weighted average price per share (in dollars per share)		$ 6.35

Commitments and Contingencies -

Commitments and Contingencies - Future Minimum Rental Payments (Details) $ in Thousands	Mar. 31, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remaining 2,018	$ 2,158
2,019	1,610
2,020	1,541
2,021	1,467
2,022	1,498
Thereafter	1,119
Total operating lease commitments	$ 9,393

Commitments and Contingencies45

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 728	$ 685

Concentrations - Concentration

Concentrations - Concentration of Credit Risk and Concentration of Net Sales (Details) - Customer Concentration Risk	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Accounts Receivable | Superior Communications, Inc. (“Superior”)
Concentration Risk [Line Items]
Concentration risk percentage	42.00%		31.00%
Accounts Receivable | Best Buy Co., Inc. (“Best Buy”)
Concentration Risk [Line Items]
Concentration risk percentage	14.00%		18.00%
Revenue from Contract with Customer | Superior Communications, Inc. (“Superior”)
Concentration Risk [Line Items]
Concentration risk percentage	29.00%	27.00%
Revenue from Contract with Customer | Best Buy Co., Inc. (“Best Buy”)
Concentration Risk [Line Items]
Concentration risk percentage	8.00%	12.00%

Concentrations - Concentratio47

Concentrations - Concentration of Net Sales, By Geographical Region (Details) - Geographic Concentration Risk - Revenue from Contract with Customer	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
United States
Concentration Risk [Line Items]
Percentage of sales	82.00%	84.00%
Europe
Concentration Risk [Line Items]
Percentage of sales	9.00%	10.00%
Other
Concentration Risk [Line Items]
Percentage of sales	9.00%	6.00%