InfoSonics Broadens Its 4G LTE Smartphone Line with Introduction of the verykool®  Maverick LTE

SAN DIEGO, December 8, 2015InfoSonics Corporation (NASDAQ: IFON) today announced the release of its latest 4G LTE model, the verykool® Maverick LTE (SL5550). The Maverick LTE is equipped with a 5.5” HD screen, Gorilla glass and both front and rear cameras with auto focus and LED flash.  Designed as a world phone to promote seamless connectivity for travelers, it features 7 LTE bands, 5 3G bands and 2 2G bands.  Its contemporary and ergonomic design includes a 2.5 dimensional curved back cover and its 16GB of internal memory is expandable through a built-in slot compatible with SD cards up to 64MB.

The new verykool® Maverick LTE, which comes in both single and dual SIM versions for operator and open market customers respectively, is expected to be available for purchase by Friday, December 11th at a suggested retail price of $189.90(U.S.).

“We are more determined than ever to pack as many high-quality features into our phones as we can while holding prices to levels that represent exceptional value,” said Joseph Ram, InfoSonics president and chief executive officer.  “With the Maverick LTE, we teamed up with MediaTek, our long-term technology partner, to help us develop and integrate this compelling new product.  MediaTek provides us with its MT6735P LTE baseband processor powered by four 64 bit Cortex – A7 ARM 1.0GHz cores, and equipped with MediaTek’s MiraVision™ Picture Quality Engine that provides enhanced display color, sharpness and contrast to the device.  I am confident our customers will be captivated by the design, feature set, quality and value of our new Maverick LTE.”

Core Specs: verykool® Maverick LTE

  • Android 5.1 Lollipop
  • 5.5-inch HD IPS-LCD Capacitive Touch Display (720 x 1280p), with Corning Gorilla Glass
  • 13MP Camera with Autofocus and LED flash, 8MP Front-Facing Camera with Autofocus and LED Flash
  • 1 GB RAM, 16 GB ROM, External Storage via microSD up to 64 GB
  • 2,500 mAh Li-Ion Battery
  • Speakerphone, proximity/light/gravity sensor and 3.5mm audio jack
  • Fully accessorized including a protective case, screen protector, stereo headset, travel charger and microUSB data cable.

Fit for any lifestyle, the extensive verykool® product line of mobile handsets and accessories is recognized for its high-value performance and functionality in countries around the world. InfoSonics continues to bring unprecedented value to the handset / phablet marketplace, where affordability has come to define a large share of the evolving mobile communications demands of consumers.

The verykool® portfolio runs the gamut from basic feature phones and sleek and sophisticated smartphones, including a series of ruggedized phones for the most extreme users, to phablets for those who prefer the big screen experience.

To learn more, visit our verykool® website at http://www.verykool.net/Products/SL5550.

 

About InfoSonics Corporation

InfoSonics is a San Diego-based manufacturer and provider of wireless handsets and related products to carriers, distributors and consumers throughout the U.S. and Latin America under the verykool® brand. InfoSonics is committed to delivering quality products that offer high-end design and impressive functionality at affordable prices. Additional information can be found on our corporate website at www.infosonics.com and www.verykool.net.

Except for the factual statements made herein, the information contained in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties and assumptions that are difficult to predict. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects, as well as words such as “believes,” “hopes,” “intends,” “estimates,” “expects,” “projects,” “plans,” “anticipates” and variations thereof, or the use of future tense, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. Such forward-looking statements are not guarantees of performance and our actual results could differ materially from those contained in such statements. Factors that could cause or contribute to such differences include, without limitation: (1) customer acceptance of the new SL5550 handset; (2) our ability to continue to differentiate our products, including the SL5550, from the competition; (3) significant changes in supplier terms and relationships or shortages in component or product supply; (4) extended general economic downturn in world markets; (5) inability to secure adequate supply of competitive products on a timely basis and on commercially reasonable terms; (6) inability to attract new sources of profitable business from expansion of products or services or risks associated with entry into new markets, including geographies, products and services; and (7) rapid product improvement and technological changes leading to changes in consumer demand for multimedia wireless handset products and features. Reference is also made to other factors detailed from time to time in our periodic reports filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release.

Note: All trademarks and copyrights other than InfoSonics and verykool are property of their respective owners.

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InfoSonics Reports Second Quarter 2015 Results

SAN DIEGO, August 6, 2015 – InfoSonics Corporation (NASDAQ: IFON), the provider of verykool®wireless handset solutions and tablets, today announced results for its second quarter ended June 30, 2015.

“It was a disappointing quarter in terms of both top and bottom line,” said Joseph Ram, president and CEO of InfoSonics. “Second quarter net sales increased 5% over the same quarter last year, but our gross profit margin was down significantly and our operating expenses were higher. As a result, we sustained a net loss of $678,000 for the quarter. A number of factors influenced these results. We encountered softness and price pressure in many of our markets, exacerbated in certain countries by the strength of the dollar against local currencies. Our gross margin was also impacted by reduced pricing to lower inventories of current models as we transition our product portfolio from 2G to 3G and 3G to LTE. Contributing to higher operating expenses was an increased level of marketing support given to certain carrier and big box retail customers. On a positive note, we continue to build strength in both the Mexico and U.S. markets, and are working to replicate our success in other countries.”

We had net sales for the 2015 second quarter of $10.9 million, which represented a $0.5 million, or 5%, increase from $10.4 million for the second quarter of 2014. We experienced growth in sales to big box retailers in Mexico, distribution customers serving Central and South American independent and big box retailers, open market customers in South America and U.S. customers. These gains were partially offset by lower sales to Latin American carrier customers, as well as the discontinuation of private label sales to customers in Europe. Unit shipments during the quarter declined by 28% compared to the prior year, but the average selling price per unit rose 44% because of a higher mix of smartphone sales. For the six months ended June 30, 2015, our net sales were $25.5 million, which represented a $3.4 million, or 15%, increase over $22.1 million for the comparable six month period of 2014.

Gross profit in the second quarter of 2015 was $1.6 million, a 21% decrease compared to $2.0 million for the comparable period in 2014. The gross profit margin as a percent of sales in the 2015 second quarter declined to 14.7% compared to 19.4% for the comparable period in 2014. For the six months ended June 30, 2015, gross profit was $4.2 million, a small increase from $4.1 million for the comparable period in 2014.

Operating expenses in the second quarter of 2015 were $2.2 million, an increase of $311,000, or 16%, compared to $1.9 million in the 2014 second quarter. This reflects a $468,000, or 27%, increase in SG&A expenses and an elimination of R&D expenses, which amounted to $157,000 in the prior year quarter. The higher SG&A expenses include increased marketing, wages and insurance costs. For the six months ended June 30, 2015, operating expenses were $4.1 million, a 5% increase over $3.9 million in the comparable period of 2014.

The net loss for the second quarter of 2015 was $678,000, $0.05 per share, compared to net income of $109,000, $0.01 per share, in the second quarter of 2014. For the six months ended June 30, 2015, the net loss was $146,000, $0.01 per share, compared to net income $164,000, $0.01 per share, in the comparable period of 2014.

At June 30, 2015, we had $2.5 million in cash, $15.6 million of net working capital and no outstanding funded debt.

About InfoSonics Corporation InfoSonics is a San Diego-based manufacturer and provider of wireless handsets, tablets and related products to carriers, distributors and consumers in the United States and Latin America under the verykool® brand.  The company is committed to delivering quality products with innovative designs that appeal to consumers and offer exceptional value. Additional information can be found on our corporate website at www.infosonics.com and www.verykool.net.

Past performance in any period may not be indicative of future results in the next period or the same period in a subsequent year. We also experience seasonal revenue fluctuations that can be significant from one quarter to another. Except for the factual statements made herein, the information contained in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties and assumptions that are difficult to predict. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects, as well as words such as “believes,” “hopes,” “intends,” “estimates,” “expects,” “projects,” “plans,” “anticipates” and variations thereof, or the use of future tense, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. Such forward-looking statements are not guarantees of performance and our actual results could differ materially from those contained in such statements. Factors that could cause or contribute to such differences include, without limitation: (1) intense competition internationally, including competition from alternative business models, such as manufacturer-to-carrier sales, which may lead to reduced prices, lower sales, lower gross margins, extended payment terms with customers, increased capital investment and interest costs, bad debt risks and product supply shortages; (2) our ability to source new verykool® handsets, including LTE models, at a sufficient pace and successfully introduce them into target markets; (3) extended general economic downturn in world markets; (4) inability to secure adequate supply of competitive products on a timely basis and on commercially reasonable terms; (5) the ability of the Company to maintain and improve its gross margins despite intense competition; (6) foreign exchange rate fluctuations, devaluation of a foreign currency, adverse governmental controls or actions, political or economic instability, or disruption of a foreign market, including, without limitation, the imposition, creation, increase or modification of tariffs, taxes, duties, levies and other charges and other related risks of our international operations which could significantly increase selling prices of our products to our customers and end-users; (7) the ability to attract new sources of profitable business from expansion of products or services or risks associated with entry into new markets, including geographies, products and services; (8) an interruption or failure of our information systems or subversion of access or other system controls may result in a significant loss of business, assets, or competitive information; (9) significant changes in supplier terms and relationships or shortages in product supply; (10) loss of business from one or more significant customers; (11) customer and geographical accounts receivable concentration risk and other related risks; (12) rapid product improvement and technological change resulting in inventory obsolescence; (13) uncertain political and economic conditions internationally, including terrorist or military actions; (14) the loss of a key executive officer or other key employees and the integration of new employees; (15) changes in consumer demand for multimedia wireless handset products and features; (16) our failure to adequately adapt to industry changes and to manage potential growth and/or contractions; (17) seasonal buying patterns; (18) the resolution of any litigation for or against the Company, including claims for infringement of intellectual property; (19) the ability of the Company to have access to adequate capital to fund its operations, including the availability of vendor credit and availability under the Company’s bank line of credit; and (20) the ability of the Company to generate taxable income in future periods. Reference is also made to other factors detailed from time to time in our periodic reports filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release.

Contact:                                                                                                          

Vernon A. LoForti Chief Financial Officer vern.loforti@infosonics.com 858-373-1675

 

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