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ZAGG Inc Message Board

  • mngtscrwdup mngtscrwdup Apr 26, 2013 1:37 PM Flag

    another baloney article

    the downgrade by the street was another baloney attempt to discredit the financial position of zagg. they base the downgrade on falling net profits, but fail to see that was a result of writing down the intangible assets and one-time charges related to the departure of the old ceo. either the writer is a bozo, or just a another paid trasher.

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    • Whoever agreed to publish this felt it was **suddenly important** to remind us about last quarter's low net income: "The net income has significantly decreased by 98.0% when compared to the same quarter one year ago, falling from $9.95 million to $0.19 million."

      Yes, this is baloney, as the article doesn't even offer a reason for the drop in net income. According to Zagg the drop in quarterly earnings is largely attributable to a non-cash impairment charge of $11.5 mil "related to a trademark and goodwill from its iFrogz acquisition." (I don't understand this reason, myself. Maybe someone can shed more light on this.) Nonetheless, I believe it's a one-time charge, so, hopefully, it won't be a problem again.

      Sentiment: Strong Buy

      • 1 Reply to readthechinastudy
      • this is what it means. when they acquired iFrogz they had to put the excess price above the book value on the books as intangible assets (goodwill). they depreciate it over a fixed life. last quarter, they ran their tests of impairment and made a judgement call to write-off a bunch of it. management decided to do it last quarter so their books would be even more clear and 2013 earnings could be unimpaired by write-offs. so the street article is completely inept, but more of the same short bull

    • it had zero effect so...

      Sentiment: Strong Buy

      • 2 Replies to smilingwolfcapitalmgmt
      • If I am not mistaken, it rather had a positive effect for Zagg. In reality, it put more cash on hand for them to buyback stocks. The apparent net income was low, simply by the way accounting works. Under normal circumstances, this should be rather positive, but the shorts are taking advantage of this company. The only way to beat the shorts is by good earning and positive future projections. We will wait an see what happens next week.

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