Shares of ZAGG Inc. (ZAGG) tumbled more than 24 percent in extended trades on Thursday after the the mobile device accessories maker reported first-quarter results below analysts' estimates and also lowered its revenue outlook for fiscal 2013.
Randy Hales, president and CEO of Zagg said, "This was a uniquely challenging quarter in which our results were impacted by a number of circumstances, some that were macro in nature and others that were company specific. Though the company experienced reduced sales, ZAGG also realized benefits to its financial activities through the pay down of our line of credit and the repurchase of company stock."
Salt Lake City, Utah-based Zagg's first-quarter net income was $0.88 million or $0.03 per share, down from $5.11 million or $0.16 per share in the year-ago period.
Pro forma net income for the quarter was $3.63 million or $0.11 per share, down from $8.06 million or $0.26 per share in the prior-year quarter. On average, six analysts polled by Thomson Reuters expected the company to earn $0.21 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter declined 7 percent to $51.47 million from $55.48 million in the same period last year. Analysts had a consensus revenue estimate for the quarter of $66.57 million.
The prior-year quarter's sales results benefited from product sales in anticipation of the launch of the Apple iPad 3 in early April 2012. In addition, the company ended its relationship with some of its distributors who were not aligned with the company's pricing strategy.
Gross margin declined to 37 percent from 49 percent in the prior-year quarter.
Looking ahead to fiscal 2013, Zagg lowered its revenue outlook to a range of $274 million to $280 million from the previous range of $313 million to $318 million. Analysts expect the company to report revenues of $315.79 million.
The company also lowered its forecast for full-year adjusted EBITDA to a range of $55 million to $57 million from the previous range of $69 million to $71 million.
ZAGG closed Thursday's regular trading session at $6.88, up $0.28 or 4.24 percent on a volume of 981,892 shares. However, in after-hours, the stock declined $1.69 or 24.56 percent to $5.19.
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