ZAGG Inc. (ZAGG)
Corporate Objectives and Management Updates Call
August 28, 2012, 04:30 pm ET
Kim Rogers-Carrete - Genesis Select
Randy Hales - President and Interim CEO
Robert Pedersen - Founder
Brandon O’Brien - CFO
ZAGG Management Discusses Q2 2012 Results - Earnings Call Transcript
» Ship Finance International Limited Management Discusses Q2 2012 Results - Earnings Call Transcript
» Hertz Global and Dollar Thrifty's Management Host Joint Conference Call (Transcript)
Good day, ladies and gentlemen and welcome to the ZAGG conference call. As a reminder, this conference is being recorded. Now, I will turn the conference over to Kim Rogers-Carrete of Genesis Select, Investor Relations firm for ZAGG. Please begin.
Kim Rogers-Carrete - Genesis Select
Good afternoon and thank you for joining us today for the ZAGG Inc. webcast to discuss the company’s ongoing corporate objectives and the strategic direction of the management team. On the call today from the company are Randy Hales, President and Interim Chief Executive Officer along with ZAGG’s Chief Financial Officer, Brandon O’Brien. Also joining us today is Robert Pedersen, founder of ZAGG. This call is being webcast and will be archived at investors.zagg.com for one year.
Before we begin, we would like to remind everyone that the prepared remarks contain certain forward-looking statements and management may make additional forward-looking statements in response to questions. These statements include, but are not limited to, our outlook for the company and statements that estimate or project future results of operations or the performance of the company.
These statements do not guarantee future performance and speak only as of the date hereof. We refer all of you to the risk factors contained in ZAGG's annual report on Form 10-K and quarterly reports on Form 10-Q as well as the current report on Form 8-K filed with the Securities and Exchange Commission for a more detailed discussion on the factors that can cause actual results to differ materially from those projected in any forward-looking statements.
ZAGG assumes no obligation to revise any forward-looking statements that may be made on today's call. And with that I would now like to turn the call over to Randy Hales, ZAGG's Interim CEO. Randy.
Thank you, Kim and thank you everyone for joining us on today's webcast. The purpose of this call is for Brandon and me to give investors, particularly our retail and individual investors and other interested parties the opportunity to send in questions and for us to address the concerns many of you have expressed surrounding the recent departure of Robert Pedersen, the former CEO and co-founder of ZAGG. Thank you to everyone who’s submitted a question and we'll be addressing your questions after our prepared comments.
In connection with Robert Pedersen's recently reported sales of ZAGG's shares has a result of a margin call, the ZAGG board in counsel with Robert made a mutual decision concerning Robert's ongoing role at ZAGG, but helped this decision upheld the board's priority to protecting shareholder value.
Robert will remain with the company as an executive consultant and will be available to us on an as needed basis. Since we issued the press for this call, we've had a very positive development, a Form 4 which filed today for the block sale that took place on Friday, August 24, in which Robert Pedersen sold 1.2 million shares of ZAGG stock. This sale completely closes out Robert’s margin position and therefore he will no longer be subject to margin cost.
We have Robert here with us today and we will be hearing from him a little later in the call. If you would like additional information around Robert's recent stock sales and departure, I would refer you to the SEC website sec.gov where you will find the Form-4s and the 8-Ks that were recently filed.
First of all, I would like to thank Robert as the co-founder of ZAGG for the many contributions that he has made in building the company to where it is today. Secondly, I would like to assure you that there will be no change in the strategic direction that we implemented earlier this year with regard to product, brand and distribution and the ongoing operations of the company.
Robert and I have enjoyed an excellent working relationship since I joined the team last December as the President and COO. Prior to joining the executive team, I worked closely with Robert as a member of the Board of Directors. Immediately after joining the company Robert and I began working with the ZAGG leadership team to identify and establish corporate objectives that would serve to guide the company and our employees for the foreseeable future.
Once those objectives were established, Robert handed much of the responsibilities for the day-to-day operations over to me and since that time I have worked with our employees, customers, vendors and suppliers to communicate and implement those objectives.
For some time now our key retail relationships had been managed by our Executive Vice President of Sales Derek Smith and his account management team. I have enjoyed spending quite a bit of time traveling with Derek these past eight months getting to know our key customers.
ZAGG has announced standing leadership team in place and our employees are closely aligned with our corporate objectives that support our drive to become a $1 billion company. We believe the company is well positioned for its next phase of development and growth and I am pleased to be working with such a talented, professional and loyal group.
Recently ZAGG strengthened and expanded its bench with the addition of Kent Wuthrich, Executive Vice President of Marketing and [Ben Doddfree] Vice President of Product Management. Earlier this year we significantly enhanced our product focus with the implementation of dedicated product teams. We tasked the product managers with both filling holes in our existing product lines and creating product roadmaps that will serve to guide our new product activity as we continue to introduce creative product solutions.