ZAGG, Inc. (ZAGG) Boosts FY14 Outlook

ZAGG, Inc. (NASDAQ: ZAGG) released updated financial guidance for fiscal year 2014. The Company stated that net sales are forecast to be in a range of $250 - $255 million from a previous range of $225 - $235 million, with corporate gross margin in the low 30's versus the previously forecast of high 20's, and Adjusted EBITDA in a range of $30 - $32 million versus the previous forecast of $15 - $20 million.

*** The Street sees FY14 revs of $232.5 million.

"I'm very pleased with the strong finish to the year, demonstrating the impact of the return to growth strategy we put in place in late 2013. Net sales at year end have benefited from stronger than expected sell through of accessories for the recent iPhone and iPad launches, and newly gained placement in key retailers, all of which exceeded our earlier forecasts. The company also experienced better than anticipated gross margin contribution due to a higher percentage of sales from the screen protection category than previously projected," said Randy Hales, President and Chief Executive Officer. "The ZAGG executive team has successfully implemented our 2014 strategy to return to revenue growth by selling more to our existing customers, improving the InvisibleShield market share, adding new retail channels, and growing our international business."

"In the past two months, we added new placement for our screen protection line, and were well positioned in the channel to benefit from one of the most successful device launches in recent history. These factors have pushed profitability to higher than previously anticipated levels," said Brandon O'Brien, Chief Financial Officer. "We are increasing the Adjusted EBITDA guidance due to better than expected net sales, the gross margin benefit of a higher percentage of screen protection sales, and the leverage that we experience from higher revenue over our fixed costs."

The Company will hold a conference tomorrow, December 18, 2014 at 8:30am Eastern Standard Time to discuss the guidance revisions. To access the call, please dial (866) 501-1537 (U.S. and Canada) and (253) 237-1156 (International), and reference the conference ID "56371980".

ZAGG will be highlighting new products and featuring the complete family of ZAGG, invisibleSHIELD® and iFrogz brands at 2015 International CES in the Las Vegas Convention Center's South Hall 4; ZAGG and invisibleSHIELD® at booth 35823, and iFrogz at booth 35623.

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