The Independent Investor

ZAGG continues to bear good news, earning $0.05 per diluted share in 2Q’09 compared to $0.01 fully diluted in 2Q’08. Earnings guidance provided by the company for 2009 is $38 million in revenue and $0.22 earnings per share.

2Q Developments:

• Recently the company submitted an application for a NASDAQ listing, requiring one additional independent board member. The outlook is that the formal listing will be finalized near the end of Q3’09, which will lift restrictions for many larger investors. CEO Robert Pedersen II commented that “many [institutional investors] of which I have spoken to are just waiting –biting at the bit- for the opportunity to invest in Zagg.”
• Best Buy has allowed the company to have a dedicated wall space branded for the invisible shield. The fixtures have shipped to over 1,000 stores, and an installation service will be provided.
• Radio Shack is now carrying ZAGG shields for an MP3 player and several phones.
• Media Market, Europe’s largest retailer consumer electronics, will carry ZAGG products at 300 of its stores throughout Germany. Media Market has 2,000 locations.
• ZAGG is in talks with AT&T, Sprint, T-Moblie, and Verizon wireless. Each company is evaluating the invisible shield.
• The joint venture ZAGG Japan will begin operations in 4Q’09. Discussions have already started with major Japanese consumer electronics manufacturers.

New Products:

• ZAGGskins, by popular demand, will allow buyers to customize their products with their own uploaded designs.
• Zsparq is a portable charger and power supply for the traveler. On a full charge it can recharge the iPhone four times –very nice.
• Second generation ZAGG audio products (Zrock and Zbuds) are sporting improved design and operations.
• ZAGGbox is known only in name. This is one of two mystery products that is slotted for 4Q’09, and is said by management to be a “game changer.”

AppSpace is still functioning as a private beta version with 10-15% of the highlights complete, but is progressing in line with management’s expectations. The program’s learning system is expected to give it an edge over the competition through the ability to provide desired apps based on the user’s profile and behavior. Management made clear that they have no intention of resting on past accomplishments. ZAGG continues to move forward at a frenzied pace.

Zagg Corp. (BB: ZAGG)
Last Price	Change	Open	Day High	52-Week High
5.10	0.05   (0.97%)	5.25	5.25	7.91
	Volume	Previous Close	Day Low	52-Week Low
	58,400	5.15	5.00	0.60