|
SAN DIEGO, CA, January 9, 2007– InfoSonics Corporation (NASDAQ: IFON), one of the fastest growing distributors of wireless handsets and accessories serving Latin America and the United States, announced today that it has an agreement with Broadlink Research (“BLR”) for the distribution of a Disney branded cell phone designed and produced to meet the communication and security needs of parents seeking a responsible solution when they decide to give their children a cell phone. BLR is a non-exclusive licensee of Disney Consumer Products International (”Disney”) for selected regions outside of the United States. The phone incorporates different Disney characters, themes and designs. InfoSonics will provide certification, sales, marketing, assembly and distribution services for this branded cell phone in Latin America, including the Caribbean, and Central and South America. The product has been delivered to major carriers including two in Chile and one in Mexico. The phones for Mexico were assembled at the InfoSonics facility in Mexico.
“We are very excited to be bringing the Disney phone to our carrier partners in Latin America. The phone, with its unique features, is targeted at parents who decide to give their children a cell phone and offers carriers the ability to further develop a new, rapidly growing market segment,” said Joseph Ram, President and Chief Executive Officer of InfoSonics. “This innovative product addresses the increased concerns over child safety by allowing parents to communicate with their children, while using easy-to-use parental controls to protect them as well.”
“As BLR continues its product developments and global sales activities we are delighted to be working with InfoSonics, as they bring a solid foundation and professional service to support our efforts in Latin America,” said Hamid Najafi President and Co-Founder of Broadlink Research. “We believe InfoSonics’ distribution solutions make them a great fit for our needs in Latin America to promote and distribute our unique products.”
The product appeals to children and parents alike. Children are given a variety of characters to choose from, and parents are provided with a feature set which includes the ability to control the usage and functionality of the product, as well as interchangeable four and twelve buttons keypads. For more information on the product please visit www.infosonics.com/disney.
About InfoSonics Corporation
InfoSonics is one of the fastest growing distributors of wireless handsets and accessories serving Latin America and the United States. For the wireless telecommunications industry, InfoSonics provides flexible and cost effective solutions, including purchasing, marketing, selling, warehousing, order assembly, programming, packing, shipping, and delivery. InfoSonics supports manufacturers in moving their products to agents, resellers, distributors, independent dealers, retailers and wireless network operators in the U.S. and Latin America. For additional information, please visit www.infosonics.com.
About Broadlink Research
BLR creates unique wireless products targeted towards market segments not addressed by major wireless product suppliers. BLR focuses on delivering unique telecom solutions to global operators and distributors. BLR has relationships with most of the global operators and with its extensive expertise in product design, development, manufacturing and sales, continues to develop unique product solutions to meet consumer needs. For additional information please visit www.broadlinkresearch.com.
Cautionary Statement for the Purpose of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995
The matters in this report that are forward-looking statements, including without limitation to statements about future revenues, sales levels, operating income and margins, wireless handset sales, stock-based compensation expense, gain (loss) in value of derivatives, cost synergies, operating efficiencies, profitability, market share and rates of return, are based on current management expectations that involve certain risks which, if realized, in whole or in part, could cause such expectations to fail to be achieved and have a material adverse effect on InfoSonics’ business, financial condition and results of operations, including, without limitation: (1) intense competition, regionally and internationally, including competition from alternative business models, such as manufacturer-to-carrier sales, which may lead to reduced prices, lower sales or reduced sales growth, lower gross margins, extended payment terms with customers, increased capital investment and interest costs, bad debt risks and product supply shortages; (2) inability to secure adequate supply of competitive products on a timely basis and on commercially reasonable terms; (3) foreign exchange rate fluctuations, devaluation of a foreign currency, adverse governmental controls or actions,political or economic instability, or disruption of a foreign market, and other related risks of our international operations; (4) 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; (5) 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; (6) significant changes in supplier terms and relationships; (7) termination of a supply or services agreement with a major supplier or product supply shortages; (8) continued consolidation in the wireless handset carrier market; (9) extended general economic downturn; (10) loss of business from one or more significant customers; (11) customer and geographical accounts receivable concentration risk; (12) rapid product improvement and technological change resulting in inventory obsolescence; (13) future terrorist or military actions; (14) the loss of a key executive officer or other key 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) future periodic assessments required by current or new accounting standards such as those relating to long-lived assets, goodwill and other intangible assets and expensing of stock options and valuing gain or loss on fair value of derivatives may result in additional non-cash income or expenses; (18) seasonal buying patterns; (19) dependency on Latin American sales; and (20) uncertain political and economic conditions internationally; (21) the impact, if any, of changes in EITF 00-19 or SFAS 133 guidance as it relates to warrants and registration rights; and (22) the resolution of any litigation against the company. Our actual results could differ materially from those anticipated in our forward looking statements.
InfoSonics has instituted in the past and continues to institute changes to its strategies, operations and processes to address these risk factors and to mitigate their impact on InfoSonics’ results of operations and financial condition. However, no assurances can be given that InfoSonics will be successful in these efforts. For a further discussion of significant factors to consider in connection with forward-looking statements concerning InfoSonics, reference is made to Item 1A Risk Factors of InfoSonics’ Annual Report on Form 10-K for the year ended December 31, 2005 and its Quarterly Report on Form 10-Q, as amended, for the quarter ended September 30, 2006; other risks or uncertainties may be detailed from time to time in InfoSonics’ future SEC filings. InfoSonics does not intend to update any forward-looking statements.
Contacts:
Jeffrey A. Klausner
Chief Financial Officer
ir@InfoSonics.com
858-373-1600
John Mills or Allyson Pooley
Integrated Corporate Relations
jmills@icrinc.com or apooley@icrinc.com
310-954-1100
|