Many of you out there have long been familiar with battery case manufacturer mophie. The company started out offering cases embedded with a battery for the Apple iPhone 3G back in 2008. In February 2016, the company was purchased by smartphone accessory company Zagg for $100 million. Now, Zagg itself could be sold to another company. According to Reuters, the outfit has hired Bank of America to help it study "strategic alternatives to maximize shareholder value." One of those options would certainly include the sale of the company, now valued at $170.4 million.
When Zagg made that announcement yesterday, its stock soared 15.1% to $6.94 on NASDAQ. But today, the company gave back all of those gains and more, declining 15.71% to $5.85. Besides mophie, Zagg makes a number of accessories that you might be familiar with including InvisibleShield screen protectors, Gear4 shock absorbing phone cases, iFrogz audio accessories and cases for the Apple iPhone, Halo charging accessories and Zagg Bluetooth keyboards for the iPad and Android tablets.
The company has been hit by weaker smartphone sales and the current trade war with China has forced it to pay more to access its supply chain. In November 2017, the stock peaked at $22.80 and has since declined by 74%. On Tuesday, the company reported a net loss for the second quarter of 2019 amounting to $5.3 million compared to a year-earlier profit of $3.2 million. Revenue for the three months ended in June came to $106.8 million, a decline of 10% from the same quarter in 2018. As a result of the weakness in its businesses, Zagg has cut its global workforce by 10% and has reduced corporate spending.
Zagg's products can be purchased online through Amazon, from the four major U.S. carriers (Verizon, AT&T, T-Mobile, and Sprint) and at retailers like Walmart and Target.