Zagg


ZAGG Inc is a publicly traded company based in Midvale, Utah. It is best known for its line of protective coverings for consumer electronics and hand-held devices under the brand name InvisibleShield. Under its subsidiaries iFrogz, mophie, Braven, Gear4 and HALO, the company distributes accessories such as chargers, battery packs, protective cases and audio accessories.

History

The line of screen protection by ZAGG that is under the InvisibleShield brand, was created by Phillip Chipping, who then formed Protective Solutions, Inc. in March 2005. The brand started selling the InvisibleShield product online, and in locally owned gadget retailers. The company began in a back yard shed, selling $200 worth of goods per day.
In January 2006, Chipping brought in Robert G. Pedersen II, a friend and mentor who previously acted in an advisory capacity, as a partner with the title of CEO, while Chipping retained the title of president and founder. Later that year, after buying out Chipping, Pedersen became the largest shareholder. In 2010, he was also named Ernst & Young's Entrepreneur of the Year.
The company changed names to become ShieldZone Corporation in March 2006 and then again to ZAGG Inc in July 2007. The most recent name change coincided with a reverse merger that made ZAGG a publicly traded company on the OTC Bulletin Board exchange with ZAGG as its stock symbol. On November 10, 2009; it was listed on the NASDAQ Market.
In August 2012, Pedersen stepped down as CEO and Chairman following a margin call, and Randall Hales, previously President and COO, became interim CEO. In December 2012, Hales was named CEO by the Board of Directors.
In March 2018, Randall Hales who served since 2012 as CEO of ZAGG resigned. At his resignation, the Board of Directors appointed Chris Ahern to be the CEO. Ahern formerly was serving as the head of the Mophie brand and international business.
In 2020, ZAGG was a recipient of a loan of US$ 9.4 million as part of the Paycheck Protection Program. The allocation of loans to publicly traded companies such as ZAGG caused criticism of the program, and allegations that funds were misallocated by the federal government. On April 23, 2020 the US Treasury announced that the eligibility criteria for PPP had been updated to be less inclusive of publicly traded companies. ZAGG released a statement that it would not be returning its loans, stating that “With extensive retail closures nationwide, our business has been severely impacted during the shutdown of all non-essential businesses due to COVID-19. We are using the money in accordance with government guidelines.”

Acquisitions and subsidiaries

The company sells protective cases for devices such as smartphones, tablets and Apple Watches under the InvisibleShield brand. The company also manufactures keyboards under the ZAGG brand name for mobile devices such as iPads and tablets.
In 2011, ZAGG acquired iFrogz, a Logan, Utah manufacturer of audio accessories and protective cases, for $105 million. In 2016, ZAGG acquired mophie, a manufacturer of wireless chargers, battery packs, and smartphone charging cases, for $100 million.
In August 2018, it was announced that ZAGG had acquired Braven, an Orem, Utah-based retailer of headphones, earphones and bluetooth speakers for $4.5 million. In November of that year ZAGG acquired smartphone case manufacturer Gear4 for $40 million.
In January 2019 ZAGG acquired HALO for $43 million. HALO manufactures wireless charging accessories such as car and wall chargers, portable power, and power wallets.

Financials

ZAGG Inc is traded on the NASDAQ. ZAGG currently has over 500 employees and is in the Specialty Retail industry and Consumer Cyclical sector.
Reuters) - Zagg inc, a maker of screen protectors for mobile devices, said on Friday it plans to keep a $9.5 million loan granted under Treasury's Payroll Protection Program, a day after new guidance that publicly traded firms would have a hard time proving they really needed the coronavirus relief funds.
"These funds will play a critical role in ensuring we have our team in place as the economy reopens," a spokesman for Zagg said in an emailed statement.
U.S. companies on Thursday began refusing government loans they were just awarded, after the Treasury Department updated its guidance.Zagg has also furloughed 20% off the company to comply with the loan.
COVID-19 Response
The Company and its Board of Directors have taken the following proactive measures to provide enhanced financial flexibility during the COVID-19 pandemic:
Closed on amendment to its secured revolving credit facility to increase available borrowings by $19.8 million through March 2021.
Closed on a small business administration loan under the CARES Act of approximately $9.4 million that is expected to fund in the next five business days.
Implemented temporary furloughs or lay-off of approximately 20 percent of U.S. employees and reduced its Europe and Asia Pacific staff, excluding China, by approximately 20 percent. Employees on temporary furlough will retain their health insurance coverage throughout the furlough.
Temporarily reduced salaries, led by the executive team, including a 15% percent reduction for its Chief Executive Officer, 10% reductions for the rest of the executive team and 5% reductions for senior management.
Temporarily reduced the cash portion of the Board of Directors’ compensation by 15% and replaced such compensation with stock-based compensation.
Deferred spending on all non-essential projects.
Implemented a host of global cost reduction initiatives.
Cancelled or delayed purchase orders to align with adjusted demand forecast.
Chris Ahern, Chief Executive Officer of ZAGG, commented, “These are unprecedented and challenging times and our first thoughts are with everyone affected by this pandemic. In the face of ongoing uncertainty related to COVID-19, we have taken a number of actions to reduce our operating costs in the near term and further enhance our financial flexibility. This includes very difficult decisions relating to our team members in the United States and overseas. These decisions were not taken lightly, however we believe they are critical for the long-term benefit of the Company and all its stakeholders.”