Welcome!

News Feed Item

Monster Digital, Inc. Reports Financial Results for the First Quarter Ended March 31, 2017

Company Also Announces Review of Strategic Alternatives

SIMI VALLEY, CA -- (Marketwired) -- 05/19/17 -- Monster Digital, Inc. (NASDAQ: MSDI), ("Monster Digital" or "the Company"), which develops, markets and distributes Monster Digital® branded products for use in high-performance consumer electronics, mobile products and computing applications, today announced its unaudited financial results for the quarter ended March 31, 2017.

Monster Digital reported revenues of $951,000 for the three-month period ended March 31, 2017 compared to revenues of $538,000 for the comparable 2016 fiscal period. The Company's product mix has shifted significantly away from memory products to higher margin sports action and VR camera products.

The Company also announced it has retained New York City-based investment bank, The Benchmark Company, LLC ("Benchmark") as financial advisor, to assist the Board of Directors in conducting a comprehensive review of strategic alternatives. The review is focused on maximizing the value of the Company, and the possible alternatives under review may include a business combination or merger, an equity or debt financing, disposition of assets or similar alternative. No assurance can be given that any strategic alternative will be carried out.

David H. Clarke, Chairman and CEO, commented, "Although we believe we have excellent products offered under a well known brand name, we have clearly had difficulty getting sufficient sales traction. Recent months have seen increasing competition in sports action and virtual reality cameras resulting in declining prices for most of our products. Under these circumstances, it is entirely appropriate to conduct a review to determine if there is a course of action which will enhance our prospects and value to our shareholders."

Financial Highlights for the First Quarter Ended March 31, 2017

Net sales for the three months ended March 31, 2017 increased approximately 77% to $951,000 from $538,000 for the three months ended March 31, 2016. In the three months ended March 31, 2017, sales in our action sports camera line represented 87% of our total sales. In three months ended March 31, 2016, sales in our action sports camera line represented 24% of our total sales.

Gross profit as a percentage of net sales was (4.9%) in the three months ended March 31, 2017, compared to a gross profit 8.7% in the three months ended March 31, 2016. In the current quarter of 2017, as we continue to disengage from lower margin memory product sales, we have sold certain memory product items for which we no longer have a customer base at a negative gross margin and have reduced prices on certain sports action and virtual reality cameras in order to be more competitive.

The net loss for the three months ended March 31, 2017 was approximately $2.2 million, or $(0.28) per basic and diluted share, compared to a net loss of approximately $1.9 million, or $(0.50) per basic and diluted share, for the three months ended March 31, 2016.

                                                         Three Months Ended
Unaudited                                                     March 31,
(Dollars in thousands, except earnings per share)          2017      2016
                                                         --------  --------

Net sales                                                $    951  $    538
Cost of goods sold                                            998       491
Gross profit                                                  (47)       47
Gross profit margin                                          -4.9%      8.7%
Loss from operations                                       (2,308)   (1,629)
Net loss                                                 $ (2,241) $ (1,881)
Basic and diluted loss per share                         $  (0.28) $  (0.50)
Basic and diluted weighted average                          7,992     3,748

About Monster Digital, Inc.
Monster Digital develops, markets and distributes Monster branded products for use in high-performance consumer electronics, mobile products and computing applications. The Company designs and engineers premium action sports cameras and accessories, in addition to advanced data storage and memory products for professionals and consumers.

Monster and Monster Digital are registered trademarks of Monster Products, Inc. in the U.S. and other countries.

For more information about the company, please visit http://www.monsterdigital.com

About The Benchmark Company, LLC

The Benchmark Company is a full-service investment banking and financial advisory firm with a sales & trading platform servicing institutional clients in all major markets in the US and internationally; a team of research analysts covering companies in the Technology, Defense & Homeland Security, Media, Publishing, Broadcasting, Business Services, Consumer/Retail, China and Healthcare sectors; and an investment banking team providing corporate finance and advisory services to small- and mid-sized companies. Benchmark is headquartered in New York with offices in 10 other financial centers in the US.

For more information about The Benchmark Company, LLC, visit its website at http://www.benchmarkcompany.com

Forward-Looking Statements:
Some of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Such forward looking statements include, but are not limited to, those such as: maximizing the value of the Company and possible alternatives under review. These statements relate to future events, future expectations, plans and prospects. Although Monster Digital believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. Monster Digital has attempted to identify forward-looking statements by terminology including "possible", "may", "believe" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including those discussed under the heading "Risk Factors" in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2017 and in our Quarterly Report on Form 10-K filed with the Securities and Exchange Commission on May 19, 2017. Any forward-looking statements contained in this release speak only as of its date. We undertake no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.

MONSTER DIGITAL INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(unaudited)
                                                 For the Three Months Ended
                                                   March 31,     March 31,
                                                     2017          2016
                                                 ------------  ------------

Net sales                                        $        951  $        538
Cost of goods sold                                        998           491
                                                 ------------  ------------
  Gross Profit                                            (47)           47

Operating expenses
  Research and development                                 70            49
  Selling and marketing                                   700           635
  General and administrative                            1,491           992
                                                 ------------  ------------
                                                        2,261         1,676
                                                 ------------  ------------
    Loss from operations                               (2,308)       (1,629)
Other expense, net
  Interest and finance expense                              1           252
  Gain on settlement of customer refund                   (68)            -
                                                 ------------  ------------
  Total other expenses                                    (67)          252
                                                 ------------  ------------
    Loss before income taxes                           (2,241)       (1,881)
Provision for income taxes                                  -             -
                                                 ------------  ------------
Net Loss                                         $     (2,241) $     (1,881)
                                                 ============  ============

Loss Per Share
Basic and Diluted                                $      (0.28) $      (0.50)
                                                 ============  ============
Number of Shares used in Computation
Basic and Diluted                                       7,992         3,748
                                                 ============  ============



MONSTER DIGITAL INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands, except par value)
                                                   March 31,   December 31,
                                                     2017          2016
                                                 ------------  ------------
ASSETS                                            (unaudited)
Current assets
  Cash                                           $        150  $      1,453
  Accounts receivable, net of allowances of $273
   and $253 respectively                                  817           856
  Inventories                                             638         1,105
  Prepaid expenses and other                              421           619
                                                 ------------  ------------
    Total current assets                                2,026         4,033
                                                 ------------  ------------

  Trademark, net of amortization of $218 and
   $185, respectively                                   2,384         2,417
  Deposits and other assets                                14            14
                                                 ------------  ------------
    Total assets                                 $      4,424  $      6,464
                                                 ============  ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
  Accounts payable                               $        667  $        268
  Accrued expenses                                      1,473         1,786
  Customer deposits and credits                         1,225         1,840
  Due to related parties                                   34            44
  Notes payable                                            38            38
                                                 ------------  ------------
    Total current liabilities                           3,437         3,976
                                                 ------------  ------------

Shareholders' equity
  Preferred stock; 10,000,000 shares authorized;
   none issued                                              -             -
  Common stock; $.0001 par value; 100,000,000
   shares authorized; 8,278,489 and 7,785,011
   shares issued and outstanding                            1             1
  Additional paid-in capital                           35,315        34,575
  Accumulated deficit                                 (34,329)      (32,088)
                                                 ------------  ------------
  Total shareholders' equity                              987         2,488
                                                 ------------  ------------
    Total liabilities and shareholders' equity   $      4,424  $      6,464
                                                 ============  ============

Contacts:

Monster Digital, Inc.
David Olert
CFO
[email protected]

PCG Advisory
Investors:
Vivian Cervantes
D: 212-554-5482
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
SYS-CON Events announced today that Cedexis will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness.
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
Today traditional IT approaches leverage well-architected compute/networking domains to control what applications can access what data, and how. DevOps includes rapid application development/deployment leveraging concepts like containerization, third-party sourced applications and databases. Such applications need access to production data for its test and iteration cycles. Data Security? That sounds like a roadblock to DevOps vs. protecting the crown jewels to those in IT.
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...
With the rise of DevOps, containers are at the brink of becoming a pervasive technology in Enterprise IT to accelerate application delivery for the business. When it comes to adopting containers in the enterprise, security is the highest adoption barrier. Is your organization ready to address the security risks with containers for your DevOps environment? In his session at @DevOpsSummit at 21st Cloud Expo, Chris Van Tuin, Chief Technologist, NA West at Red Hat, will discuss: The top security r...
"NetApp's vision is how we help organizations manage data - delivering the right data in the right place, in the right time, to the people who need it, and doing it agnostic to what the platform is," explained Josh Atwell, Developer Advocate for NetApp, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Fusic will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Fusic Co. provides mocks as virtual IoT devices. You can customize mocks, and get any amount of data at any time in your test. For more information, visit https://fusic.co.jp/english/.
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 21st Cloud Expo, Lennart Frantzell, a Developer Advocate with IBM, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing devel...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
SYS-CON Events announced today that B2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. B2Cloud specializes in IoT devices for preventive and predictive maintenance in any kind of equipment retrieving data like Energy consumption, working time, temperature, humidity, pressure, etc.