ZAGG - Earnings call transcript Q4 2018

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Operator

Good day ladies and gentlemen and welcome to the ZAGG's Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I will now like to introduce your host for today's conference Brendon Frey. begin. may you Sir,

Brendon Frey

Good review thank XXXX the Ashley. us financial for today to ZAGG afternoon you, you and joining results. Thank fourth quarter

Executive Financial call Brad of Taylor Finance the today incoming have President Ahern, On CFO. and we Smith Vice Holiday, as Officer; Chief Chief Accounting well as Chris Officer;

closed prepared P.M. issued will session. and open Time. fourth our Following today On up the earnings call X:XX Brad's quarter Chris release at the comments, we press Eastern after market question-and-answer approximately for a

As Relations' earnings supplemental a release, we financial information on to follow the published on website. a our Investor

We also furnished X-K. the this SEC on document Form to

You can website Results Relations' the find Investor Quarterly our all section under on tab. our www.zagg.com Financials in documents at the earnings

conference Relations' archived the We are recording under this webpage call for the will ZAGG at call and one Investor Events of a tab the year. be podcast

everyone your outlook we'd certain response additional begin, to to forward-looking like to, not speak statements and limited hereof. statements we not forward-looking or future management of and statements contain future Before the make results statements the of performance that for questions. but company. guarantee include, may remind and for the the project prepared operations are remarks in These do of performance statements that estimate the our date as company These

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Chris Ahern

Good thank for time and you and earnings the join call. XXXX significant QX Brendon. you, ZAGG. us on successful Thank afternoon XXXX to our a year Fiscal was for taking

like in in for iPhone delivered This we three with the We of as to Looking adjusted execute smartphone of headwind billion the with and we were $XX we revenue business talent in products our our margins, and new be faced exciting provide EBITDA important battery a screen diversify through to XXXX outlined earnings, $X approximately our company goal all devices, particularly of to a of organization was path worth in that cases. fourth XXXX new delay for new revenue which mophie in and able device-specific these back the expansion, continue growth, a included quarter juice international expect we support completed our vehicles. added pack the protection a the long-term mid-teens sales notably, better that sizable and slowdown acquisitions growth and Most revenue certification record we number we a lot will accelerated some accomplished million and even headwinds. we milestones. estimate realigned to

into host Since with long-term growth. the busy inorganic and in full tariff On EBITDA demand international the adding our U.S. a industrial fastest-growing with regards billion expenses For were global audio of domestic our while along driven lapped pad ZAGG. accessories period new the top by we of markets. associated that is and premium premium licensed we presence reform, the strong material full XXXX Featuring the products progress in in screen GearX, products and In extended declines several and of July, combination ZAGG but from one team, latest protection to in to the offset the combined near these with Helping X% as product delay. impacts family. end large million, business $X.XX, a fourth with helped we've increased annual launch VisionGuard our expenses award-winning was earnings military to XXX which portfolio with results ago hosted we applications. the world-class achieving great people expectations immediately our very meaningful gross in portfolio the year, I'm port Investor through compared November, propelled intellectual completed our our on a double-digit in in strong shock-absorbing in audio driven professional event DXO growing business demand the competition. for highly Glass range. the growth batteries. engineering product product teams mophie a to adjusted pleased with with sales increased and charge case an reflect brands increase sales line technology that the of the purchase wireless protection the organic the a in year year product goal BRAVEN improvement down costs to U.K.'s we side initial quarter share portable VisionGuard of and top Similar The deliveries retailer category. exclusively number gain was level brands M&A the in used the wireless GearX's and incremental creator increased early acquisitions. of demand and by record history some in category BRAVEN, and the the revenue BRAVEN, point pack request September $XXX for is Starting one fuel front. recent brand basis penetration screen equipment impact segment of fourth screen category. a of of transaction the sell-in place the smartphone the of highest protection and our also made results, drive talented tends margin When already we InvisibleShield higher adding contributed property ahead both end in case acquired brand our the the a At mid-teen With communicated of differentiated of of rugged the increase. combined products of + a innovation, protection, potential partially innovation a margins juice Day our the screen for year to to to operating to growth three strong related to the of of and including acquired charging innovator $X Bluetooth management at advanced especially and and we sports, per compared tax gross last sales guidance company's margin, benefit currently of the most quarter, year, to and on

As as increasingly history More and a the offers several a of and growth company in we gives channel, is important leading and power the HALO top-selling compelling protection direct-to-consumer position category. to with more for QVC. likely recently, mobile trend We opportunities acquired new of ZAGG combination some ZAGG the brands our the HALO the look distribution of innovative InvisibleShield electronic powerful January. accessory costly developing as a products with to home in brands leadership shopping brand of believe one for of of potential is early rich new handsets reputation HALO other the further continue a GearX well. which long-standing

added reshaping how up for The we excited brands a these in time. operating processes been these three healthy operationally businesses short the do from leverage The this on being to formulate success. plan cash pay heavily are with and a coming internally our Part Historically, new is the this category business right acquisition, have allowed us break protection available. strong both to such the culturally go-to-market to brands sales strategies. to period has flows to and putting to our the weighted down is strong existing our integrate M&A overall ensure of mophie execute screen our them portfolio to for sustained towards successfully on of We the position debt with very set we and associated the by generated a take key XXXX as company became in they order great few sheet these majority opportunities balance ZAGG a accounts. in of and time one

network to With growing four additional product share our mix, of diversifying significantly focus done and are in capturing as expanding moving Protection retail and the will our by brands. include on we've OEM the brand forward of audio U.S. InvisibleShield devices screen the we power, and partners, of GearX such and our and protection, work market outside its our protection protecting and categories: protective all products orders. as own is led cases primary productivity

We fall devices, future of As and grow and only consumer. entry-level The poised is brand. the footprint going to I in cases, is importantly, and XG, of in for acquisition the for to category that apps mid-tier BRAVEN of for increase cables applications so in and slightly that permission provides recent the we played the wireless power larger protection thanks in feel operate consumer the of power to heavy albeit today important power, brands. end mophie importance with small ever-increasing a the comes confident other with iFrogz the the mobile Power only biggest is of growing that one the of higher needs and introduction and large global category category, today's Audio new adapters and devices. us as portable battery market. with this charging, said more into continued cost growth. into of use are we've this Power many streaming the our years HALO and location-driven earlier is should to a

the other productivity. a category includes consumer's productivity accessories increase that keyboards Lastly, and

the this the is an potentially that it is have grow one fastest product through to opportunity While introductions. innovative categories, of we smallest our new

are XXXX, in of we the excited about we think business. number opportunities exist our we As believe

over sales think smartphone excitement past particularly a near-term the quarter, device-specific the Our packs. been slowdown somewhat headwind which tempered by fourth will and we juice screen the XX products has like be the months in in protection for

mitigate impact technologies including Glass utilize + juice to $XXX We growth which million, allowing our for this are VisionGuard the all harmful blue in hard device Taking product of XX% consumers launches port Lightning XXXX like targeting account, through of to existing to innovative charges are sales screens. new working representing expansion that to into a from XX% helps and million the pack light wirelessly audio this access, range of our we year-over-year. of filter the $XXX

to our the X% newly XX% brands acquired XXXX assumes of full contributions to with from performance. three grow our addition our this to each base recent compared in region the acquisitions, guidance of year In

increase, organic forecasting year's into late International plus juice tariff softness high revenues early up more in a potential deliveries XXXX following of In digits devices, low the mid ahead delayed shipments growth, in launch. will partial sales This go by in are some capitalize HALO, details in of million but between the offset teens. single last recovery GearX led Brad moment, in to we our domestic takes EBITDA of year terms the our targeting increase owning by into consideration for are and pack recent outlook to plan we of and this each guidance is make America increased $XX investments incremental BRAVEN, first ensure both positioned a to $XX to awareness adjusted XXXX three on Being million. believe in all we well exist in the consumer internationally. distribution opportunities drive brands to and and we North

appointed has will He's family. hard adjusted to closing, same improvement a to give In ZAGG all targets. step President the growth While and their are with accelerate put At EBITDA Projects. role I'm Officer. would growth next XX down of March experience, margins, on I President pleased the thank especially a and years new of like the track and to CFO Brad Thankfully, recently the Chief most Taylor years of for nearly additional pressure with contributions new this work to to as Chief senior including of work dedication Officer. Brad's been Financial addition into extremely ago to our Smith the plans for just come tenure to take XXXX. turn want position more I financial and Finance Senior over more decided newly executing our leadership not a mid-teens Taylor the adjusted thank team his plans of that, a in to that in effective instrumental Taylor. will would has time, will Brad team in board confident Brad. profit his put I'm with to spend today been EBITDA off the his strong recently He's help I XXXX him helping ZAGG past forward these brought some our his employees on appreciative decision and quickly back to like we at agreed to transition very our time four and building year, he investments to success, over that stay as the Holiday toward CFO it XX Vice Strategic in company I'm great for Financial eight willingness role. his ZAGG, Finance foundation in and on the throughout as is and closely Accounting. transform working years future. looking when hard retirement Vice and past with ZAGG our delayed With call created our this but Brad

Brad Holiday

posted Chris. fourth my our earnings our will site, focus the quarter release questions. we information year Investor Relations you, open I'm on call and the to supplemental Thank and comments financial and our in P&L full then covered balance both sheet going With for outlook, on performance

XX% Our remained to to the year balance the year, of last The to acquisitions to XX% and of million the receivables recent compared to associated the increased turns of in higher to to Compared a reason $XXX very XX extended due the sales with inventory in ago, good. improved year excluding strong were remains the fourth acquisitions with days last inventory million, increased quality to holiday the at corresponding incremental X.X keep during days our for at quarter and to times compared XXXX. Inventory slightly our same payment end $XX compared sheet terms support Consolidated receivable to DSOs levels X.X flat period same to customers year. due to primarily XX timing accounts times last year. primarily and compared international their increasing growth.

of share million quarter, canceled year. $X authorization. of a the the had remaining the Directors repurchase previous authorization $XX During $X of company XX, the authorization Board worth that approved in full the new approximately million million $XX for million On repurchased shares and and March

on the of repurchased a per As X at increased debt last company This of compared adjusted million a than stock has $XX Net basis. which the past debt to debt, million to million year. note, of times an leverage years a average less $XX less six XX-month EBITDA consolidated $XX share. is nearly $X over cash, represents price side trailing

with during had when year. Excluding no at cash the CapEx in cash which year paid of end share of particular priorities the $X no to have would've tuck-in million, payments stock; year, fund flow acquisitions our $X our the debt free order: was the and for repurchased cash for and the acquisitions. tax service of repurchase million flow, outstanding year. combined debt; million been for resulted regards cash $XX consistently to With our the in free company

Given and future down M&A fund the give for be potential our us paying months opportunities back activities, recent stock. debt next will focus to our our our buy several flexibility additional opportunistically to

few for Lastly, our a discussing I to annual guidance minutes spend XXXX. want

the full that X% growth X% international teens year. XX% at consideration of The to impacted certification. to million, to acquisitions for was XX%. $XX because our into Organic takes see recovery XXXX in results, This to the our recent the assumptions net mid growth the include adversely $XXX and growth from juice sales approximately or sales range business to their built actual OEM of compared XX% of strong to mentioned, key currently in a upper Chris we the compared expansion continue As a growth to XXXX. combined million $XXX X% timing are of of estimated the Asia-Pacific, Europe which totaled to million pack into as

Our sales recover a portion lost help will in of new access – pack of juice both XXXX.

business battery during expect return juice device slowdown our headwinds their sales to continue has expect tailwinds, that quarter don't into will we fourth experienced we However, own XXXX the a XXXX. now introduced Offsetting and these Apple OEM case. they to that we that pack levels from in

customers XXXX. and purchased the this against In mid our quarter of be additional to our protection year. improvements as through is margin estimated screen we annual range we margins be lower addition new hedge first integrate We into as our flat operational mentioned, to are tariff as impacting compared to of tax sales provide updates by This in is as offset at approximately takes XX% certain estimate higher rate products, which we'll this inventory mix consideration inventory XX% acquisitions. ahead time a progress Chris year-end increases, through. as the sold roughly anticipated Gross

in in And determining To are still HALO of impact related BRAVEN, amortization HALO purchase only given XXXX of in per fact, earnings including which associated and comparing ultimate share make process the January XXXX impact transaction in related of assist the will XXXX, better acquisitions. acquisitions GearX difficult. excludes XXXX and somewhat share, the earnings. guide EPS and expenses acquired recent that to to expect operating from was comparisons tax we these transaction will we the XXXX XXXX with affected earnings and We per year-over-year accounting expenses that

a incremental are an XXXX this to with XXXX meaningful to estimating in shares We of Adjusted We year. share This assumes our and operating million be acquired $X.XX compared miscellaneous $X.XX EBITDA associated results brands. newly expenses outstanding. representation per XX.X allows of expenses is comparison on believe approximately product earnings apples-to-apples build to million other operating $X.XX marketing, $XX to for prior our estimated at sales traction for with million. placement, is to and $XX better

the of half. are there market. a And be their but with with bit dilutive range post in for associated this we accretive product sales a and is sales get While by for these acquisition year. placement midpoint the occur second of the third million. we models second second year at benefit million $X possible. Free most will expect This fall a our maximizing first HALO currently products and be We the sales occur to as and quickly CapEx fourth aligns $XX timing BRAVEN, approximately as other doesn't feel half, to we the This in in first paid flow sales half This planning sales device long-term cash estimated your in cash won't million quarter is approximately more the the on the taxes with One majority GearX million. profit. QVC. their mean, acquisitions $XX brands launch the these of sales traditional associated into and of assumes of launch will of half $X.X OEM the consideration building new will of

the XX% to Our to first annual sales time in best of with half. estimate the fall this that second XX% XX% will at half XX% in is

to be quarterly currently compared to typically into the in of estimate moving through performance. the the million last help details year. that we you QX to the we to guidance range more $XX given the sales we specific This than $XXX are parts are don't in some want first number to understand change of million the heavy load-in from We for $XX that million year-over-year device we consideration While the takes expected be give Adjusted tariff – and of two-thirds a pull-forward. associated way quarter This charged quarter. EBITDA last bad half of lower slowdown year. already is of the comparison and during the which mophie sales to will expenses with majority due tough the first the OEM in is I and sales impact negative continued with second year's full shipments, their generate the to sales mentioned the acquisitions, a the share

we the the that, revenue adjusted fixed-cost headwinds, of first be single-digits, accelerate period as to QX open base growth. I the leverage we second our for XXXX in half the but questions. these now EBITDA Given significant expect in will With half in a of to call

Operator

line first with of Thank you. our from Malouf Mike [Operator Instructions] And comes question Craig-Hallum. the

Your line is now open.

Mike Malouf

can Thanks for give could If HALO visibility of sense Hi, those regards acquisition with numbers? color to And the and that some talk taking ZAGG particular particularly more the you a the on give we a front, us you with you half? the my when in start guys. of second get into as GearX. of just opportunity we brands, questions. on have bit Can with kind what into HALO, little you about us synergies

Chris Ahern

It's sure Chris Mike. Yes, here.

could with we look in the the of our do into some portfolios we basically, and see and -- terms be some the our question brands. clearly a So QX around And HALO's year as and of QVC channel so strength in opportunities is the we will leverage HSN. of portfolio QX, there forward whereby to look of the rest technologies and brands other synergies across we from as related HALO, lot

with and sure in plan is on there opportunity, HALO this their culturally for really ZAGG making but So year. execute on now, it we to relates focused we're having right as fit

Mike Malouf

much sense was because certainly you drawn the quarter a fourth situation? Okay. then can presold of not -- just presold, or -- the And into give of but us how tariff

Chris Ahern

we But a terms not heavy as on of you, well. it's obviously comfortable sell-in. in number where standard would to were getting run hard because I We're it's orders super it's a with quite it, put are, tell Yes, single-digits. but low rate we

Brad Holiday

really Yes, Mike. on to them is This prior week the up the the on tough Brad. sell-through And with to you orders. six is calculated four normal estimate number weeks a mix way sell-through based is is It sell-through. just because hand

holiday So obviously the shifts through that season. as you get

be entire the at didn't across But a requests And it to didn't really inventory. frank, of I seem of number didn't little to be it it demands business a out front the as the because overall, a in the it. of towards month want end looked months That's crazy think some wanted, not I anything additional we they meet it's max, was once January, far an get just to just products. but heavier number was tariff-related two or calculate. for bit towards to it we ship easy But again, their to estimate. just to totally an

Mike Malouf

overall were half of Okay. in were to about or talking the And you first XX% talking the and said -- When XX% about your XX% then acquisitions? you XX% final to just a sales sales you overall question. specifically

Chris Ahern

overall sales. No,

launches I been year, get you fall. second kind come has now think in their the major get of will half try really BRAVEN QX, times, in HALO in the GearX, new launched typically product kind probably the nature of QX. don't be those their just the placed placement. are to business. That's before But half. we're devices because the going be And XX% more back acquisitions the working of product hard to of mainly for to are many the

of I'd front and the a So almost XX%. more half call acquisitions XX%

of the So this it skews year. kind numbers

than as the past. it's we in to year, skew on As but particular we forward placement, and we to start go it'll forward, go out going though as has dramatically this more get it balance

Mike Malouf

great. Thanks for the help. Okay,

Chris Ahern

You bet.

Operator

Thank of you. with line D.A. from Davidson. comes the next And question our Thomas Forte

now Your line open. is

Thomas Forte

taking questions. Great. Thanks for my

to I you those new you integrated on far sales Thanks. with in your international you on two international is feel that internationally also extent have has like fully InvisibleShield out? general, then as And sales? into rolled products guess do have and distribution you helping And One effort, all your questions. demand well? your intend that I to what on your distribution? all when And do acquisitions sell So how

Chris Ahern

ISoD Tom. there's great for it. driving will the a opportunities Chris. so Hey, internationally. Yeah, We're number This still of I continued us On is questions. it’s not with open force growth doors. still you to ISoD, doors, tell on potentially but this looking we so We're very main of into is with It's done, pleased it's the incorporating at also new ISoD, And for year. ISoD in ISoD. BXB the light not more internationally even potentially just it on opportunities type blue technology have terms innovation filter

on a these internationally there's through with end So question the fully acquisitions, the track domestically to lot be we of of acquisitions we're as opportunity integrated And be the with year. really on pleased pleased with We're here regards ISoD. think your performing. as as will well that's to how very and I

integration of have each We assigned the team with acquisitions. dedicated a

the very where we completed year. we those integrations of So, good right by feel strongly having are the of and now in very terms end

Brad Holiday

one Yeah, Tom. and I would thing, just add

I got internationally. their for majority of HALO, sales started really think

to doors. bigger to And U.S. certainly then centric, more opportunity still but but the all of expand opportunities we there see that centric. now them combine so expansion more believe be BRAVEN our we internationally are The you U.S. products our start of internationally. it's opportunities been portfolio there's will So expanded HALO domestically to with has open that

Tom Forte

quick one answers. then those follow-up, thanks and for And

of involved, to that tablets, some product we about profitability should and portfolio screens? that we so other should beyond think the that how about licensing -- On how gross And but the about to general? smartphone, opportunity think think there's relative should laptops VisionGuard, how we then the versus extend in your I know

Chris Ahern

thanks. so Yeah,

makes we look et opportunities. of The Tom expanded pertains it into some laptops to have continue right we some are notebooks part to at -- actually sense first we just as BXB it question, to as to iPad some and it where and going models actually pertains your is cetera --

margins, to protection mobility would comes across we're similar. very, the I spectrum It's similar have margin. it's what So of we down looking on very It's to screen when taking not to Regards it technology. really that the say today.

Tom Forte

Great. Thank much for my questions. very you taking

Chris Ahern

problem. No

Brad Holiday

Thank you.

Operator

from Thank Capital with our of Partners. King you. next the And line question Dave comes Roth

Your line is now open.

Dave King

Thanks. Good afternoon, guys. I guess…

Brad Holiday

Dave. Hey,

David King

Hi.

HALO on in First of coming incremental GearX from acquisitions? And investment is you making to guidance, I EBITDA the the are guess incremental $XX three how in $X million the just XXXX? in how much much million and

Brad Holiday

an specific may have originally you with want and one, EBITDA Yeah, we acquisitions year we that be placement to get we detail. the of accretive just I tell not because it it these would to up give that we Dave, be don't What all from quickly. said acquisitions stand some perspective. would

So and need and two why other out we very it to be be accretive three, that will. look we But over marketing you years if long-term will in-store there'll things POS as do. four to

level accretive in don't only not will for be first investing it provide just sales we So probably that be because but to historical what some long-term going detail, year expenses the of been, has we're have to of and our -- do partial them, we EBITDA but margins overall year also year also.

Dave King

mid-teens of differently mean, were kind EBITDA margins asking they I Okay, previously maybe it doing or… understood.

Brad Holiday

margins, they historical our than so – They were stronger were doing historically better yeah, yes. our than

Dave King

how I for Okay. just to of trying them. I'm sense get you a asking, about vis-à-vis million $XX paid reason The to think I'm the think

and much going some how much sense So of that of just versus get how paid kind to you to stuff. trying of I get was you're a

sounds trends overall progression think segment to the first quarterly better you by guided the the I little revenue, bit it and a to XX% it trying organic in and was for like. half to XX% Okay, understand

half. not some charge are that think that repeat? the or pad of sell-through other half to Is like to a mainly because $XX XX% I will then? you there puts all of that it might revenue Or reduction have if that seems case in of implies Is power helped or -- first down million could business due power that? the actually to offset that management sort organically

Brad Holiday

of And that's our not load lot of as we're the of Yeah, into charge and year. insignificant wireless first are, what sit the a we did big certainly launch half we kind Dave, quarter the an pads. because at and amount a the last headwinds look lapping first is assumptions,

second know related third on going all to quarter. now. in headwind slowdown the of That be don't would the one, an will forward magnitude order our the it to shake then just look pre-tariff items. I is as at be pull we trying in we're in of And the out of would sales have fourth the kind probably products that of pulled order it's think of devices assume, right got the device I some probably the that impact where which

Dave King

Okay. That helps.

to half? should then double-digits headwinds. these that in you I will screen I of want I in the down So, be protection mean, the be even still do, some able up fourth say think, we first assuming be to with were quarter

Brad Holiday

out me we're XX some Taylor, -- that one right at that's the to a overall trailing broad help I really you think screen look I Yeah, make tell you the category take on trying now. grew I'd protection that XX% months. assumptions think on if a business,

Taylor Smith

Yeah.

Brad Holiday

we're rates improve. the now of we bit the and a we looking higher think XXXX Saw attach in into more the the but of the we've got we've as on I that and up over grew. is devices And I about price we still always it fourth XX%. got the expect seeing kind the But think of couple in years expensive, it of to XXXX, good talked news ticked think ago a attach slowdown quarter, were kind mid-teens rates. little teens, in in And I

see on talked major about, well very the I So, the a bit going looking and device more phone for us efforts categories out and our as at trade can the sales. we're acquisition offset It screen headwinds little to includes paying also it that going makes as to train think with and business start as as Chris of GearX VisionGuard, go consumer because GearX we're in, cases. protect both has protection they to that is protection wanting to as a in for it probably pleased the of so well customers, our our

the we I predict able we'll to it. last know how attach in as long sales. to drive softness. think just of rates, I continue So, can't that offset device softness we don't will be some

saw the QX just XXXX to add? to and you now, going anything be carries demand And right QX in a will to drive predominantly in always us. don't settle know out. A, there's think it's where we I for softness devices. I But probably going that over in that assuming continuing just more at we're rates. for work Chris, would attach

Chris Ahern

have up think Brad. you summed I No, it perfectly,

Brad Holiday

Does that help, Dave?

Dave King

driven I be sense. see me. that slate really it's for like their until know sounds One last one than it's else of more mean, Apple tough we is so of devices what does. quick to makes some going anything and next it to it No,

it's So, on to at retailers? Target did It to approval pack, to MFi Verizon? that. like not better sold in understand that get and able get the to beat trying but it's additional Apple, be Xs do now still going you sounds juice distribution now it other Just for expect

Chris Ahern

the you'll Yeah, so of juice end access see of is pack in retailers our to our most carriers. and -- going it month major be this

getting it's pack MFi into on approval To process. So, going around juice an product certification, question yeah, placement. currently have the our that's we the your

Dave King

Okay. All right. guys. my for questions, Thanks taking

Chris Ahern

Thanks, Dave.

Operator

you. from Sinderen comes question line with next the our FBR. Van Jeff B. Riley Thank of And

is line Your open. now

Jeff Van Sinderen

everyone. Hi,

just that a carries assessment -- in with mentioned SKUs briefly your battery is there. comments, versus prepared Apple the can competition us what previously what you And changing? they Maybe Apple, us but mophie happening is just from give Apple carried your pack own think you their give juice number of sense trend branded of with of in a the I packs?

Chris Ahern

It's here. Jeff. Yeah. Chris Sure,

Apple their tell the in pack. stores, in retail stores. is will Apple having I has we've terms retail we our announced mophie and previously pack you will pack So, have Apple so their which pack own obviously battery of mophie juice a is coexisted in not What juice battery yeah, a

feel that we've leveraging color out technology. very and there put point technology consumers. proposition wireless still the with price pack brought variants access. a the the juice for believe we the we it's There's I more Obviously, good So, compelling the about is at $XX

it's competition the rest still and the in So, solution channel. solution, we their good about feel while has Apple of our

Jeff Van Sinderen

expect that came out this? to And out packs? with to surprise their you them a to with Or come was you clarify, did own Okay. just it battery

Chris Ahern

that that we was I an that would you tell nothing Apple had decision. do to with

previously had that information. weren't So we --

Jeff Van Sinderen

are got starting a phones Okay, emerges? it flexible but thoughts foldable I think the thinking are be know screen any then early, Do talk it's for it. that film? foldable will to Or because on you And about now? about just how more market that provide you likely protection you how might people as

Chris Ahern

Yes, great question, right.

tell as devices that So I the curved. would more you started our become R&D

really bring difficult So very, even market with protector. to the curve a good to devices, screen it's very

the when I So or doing work started becoming a like SX of SX it we've devices. curved been think -- back lot was they

years So number a had we've of perfect to it.

in happy the I think in this of have launch solution the market. very for terms our we're latest Samsung year with the devices, we

is R&D to have now pertains a be phones, it. don't foldable we and for it right. looking foldable the at But the There's se As going time right would will expect a per ready we're it lot solution phone. of we we into when

Jeff Van Sinderen

appears sort was screen has guess perhaps recently. I could I because this a screen been topic I that one if robust its more its one most phones in just squeeze the I don't Samsung It know then own protector. protector, of And of shipping; Okay. not with think

there tend for be that talked the about hasn't easily? Just opportunity broader an how wondering does OLED screens really to Just that which you yet. picture been demand relate for scratch might wondered, to there if

Chris Ahern

Sure Yes. questions. great

So a good came tell demand still up with screen you their for protection. there's premium really Obviously will I Samsung solution.

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Jeff Van Sinderen

for my Thanks questions. Okay, taking great.

Operator

And you. question with Ladenburg. the Thank comes our from of Jon last line Hickman

line now Your open. is

Jon Hickman

Hey, I’m have asked been answered. questions All sorry. and my

Operator

for and now turn Chris Thank any Ahern session. closing this the remarks. gentlemen like you. to concludes call I would Q&A back today's Ladies to over

Chris Ahern

I look us. you our for updating joining joining Thank you Thank Okay. to for our you QX forward all us earnings on for call. XXXX QX performance.

Operator

you day. thank today's wonderful disconnect. gentlemen, may conference. you and in have participating Ladies and does This a program Everyone for all today's conclude

ZAGG (ZAGG) 12 Mar 192018 Q4 Earnings call transcript