Exhibit 99.1
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InfoSonics®
It pays to be well connected.
The Premier Wireless Handset and
Data
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8th Annual San Diego Growth Conference |
August 19, 2005 |
Safe Harbor Statement
The information provided in this slide presentation contains forward-looking statements that relate to future events. These forward-looking statements involve known or unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of InfoSonics to be materially different from any future results, performance or achievements expressed or implied in the forward-looking statements. Important factors that could cause our actual results to differ from our expectations are described in our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and current reports on Form 8-K, each as filed with the Securities and Exchange Commission and include, but are not limited to: 1) the actions of competitors and customers and our ability to execute our business plans; 2) our ability to increase revenues and operating income; 3) our ability to expand our current businesses and to enter new business areas; 4) general economic conditions; and 5) other factors. The forward-looking statements contained in this slide presentation represent InfoSonics’ expectations as of June, 2005. Subsequent events may cause our expectations to change, and we disclaim any obligation to update the forward-looking statements contained in this slide presentation.
Corporate Evolution
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1994-1996 |
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Founded 1993 |
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Began trading Wired Products |
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Appointed Distributor of Panasonic for Latin America |
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1997-2000 |
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Migrated to Trading & Distribution of Wireless Products & Accessories |
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2001-2003 |
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Distribution of Wireless Handsets |
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Began distributing Samsung product |
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2004-2005 |
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Distribution+ |
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Wireless product customization & remanuf |
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2006-2010 |
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Distribution ++ |
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Assist manufacturers with warranty, sell thru & homologation |
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InfoSonics provides the critical link between the manufacturers and the customer |
Experienced Management Team
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Name |
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Position |
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Years at |
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Years in |
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Joseph Ram |
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Founder, CEO & President |
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13 |
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20 |
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Abraham Rosler |
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Executive VP & Director |
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9 |
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12 |
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Joseph Murgo |
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VP, Sales & Marketing |
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5 |
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16 |
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Jeffrey Klausner |
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Chief Financial Officer |
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2 |
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2 |
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John Althoff |
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President LA Division |
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1 |
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11 |
2005 Wireless Markets
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North America • 220 million subs at year end • 30 million net new subs • 135 million handsets • 85% replacement sales • 7% unit growth
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[GRAPHIC] |
Global Market • 1.9-2.0 billion subs yr end • 250 million net new subs • 730-740 million handsets • 65% replacement sales • 11% unit growth |
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Latin America • 210 million subs at year end • 45 million net new subs • 75 million handsets • 35-40% replacement sales • 16% unit growth
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Source: US Bancorp Piper Jaffray, February 2005 |
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Business Strategy
• Exploit opportunity with RSA & Latin American carriers/operators, both currently underserved markets
• Provide Value Added Services which create “stickiness” to our customer base
• Grow margin and sales through relationships and brand building
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Gross Margins |
Inventory Turns |
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[BAR GRAPH] |
[BAR GRAPH] |
Market Position
Serving the Wireless Operators Across the Americas
[LOGO]
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[LOGO] |
[GRAPHIC] |
[GRAPHIC] |
InfoSonics® |
Network
Operators
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Customers |
Value Added Services
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In-house Services |
InfoSonics®
Value
[GRAPHIC] |
Field Support |
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Product Customization |
Marketing & Training |
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Remanufacturing |
Distribution |
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Warranty Services |
Homologation |
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Technical Assistance |
Sell Through |
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End User Services |
InfoSonics Customers
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Domestic |
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Latin America |
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5% Dealer
Agents
10% Insurance Fulfillment |
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5% Distribution Dealers |
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[PIE CHART] |
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[PIE CHART] |
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85% RSA
Carriers
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95%
Carriers
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Domestic Customers — RSA Carriers
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[PIE CHART] |
One |
[PIE CHART] |
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30 + Million |
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= the size of a |
Latin American Expansion
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• Latin American market growing faster than worldwide market - 82% growth in 2004, and 16% growth expected in 2005 |
Latin America Subscriber Forecast |
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• Strong Growth Drivers |
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• Carriers transitioning networks from TDMA to GSM or CDMA |
[BAR GRAPH] |
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• New low-priced handsets |
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• IFO currently sells to only 10% of carriers leaving significant growth opportunity. |
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Source: US Bancorp Piper Jaffray, February 2005 |
Latin American Customers - Carriers
Most of the 85 carriers belong to 5 multi-national
subsidiaries operating
in different countries across Latin America
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Company |
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Trading Symbol |
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Exchange |
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Headquarters |
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Market Cap |
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[LOGO] |
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TEF |
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NYSE |
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Spain |
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85 Billion |
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[LOGO] |
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AMX |
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NYSE |
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Mexico |
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37 Billion |
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[LOGO] |
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VZ |
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NYSE |
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U.S. |
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$ |
98 Billion |
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[LOGO] |
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TIM |
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NYSE |
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Italy |
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54 Billion |
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[LOGO] |
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MICC |
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NYSE |
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Luxemburg |
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1.7 Billion |
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International Sales |
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Equity Snapshot — IPO 6/04 @ $6 - IFO (AMEX)
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• Market Capitalization |
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$ |
24.2 |
M |
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• Shares Outstanding |
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5.8 |
M |
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• Share Price (as of 8/16/05) |
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$ |
4.16 |
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• Revenue (LTM as of 6/30/05) |
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$ |
93.6 |
M |
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• EPS (LTM) |
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$ |
0.22 |
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• Average Share Trading Volume (3 Months) |
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37 |
K |
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• Cash and Equivalents (6/30/05) |
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$ |
0.7 |
M |
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• ST Debt — Revolver (6/30/05) |
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$ |
6.3 |
M |
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• Price / Sales (LTM) |
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0.3 |
x |
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• Price / Earnings (LTM) |
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18.9 |
x |
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Why InfoSonics?
• Wireless industry dynamics very positive
• Business model produces superior margins & profitability
• Solid financial history
• Sound growth strategy for US and Latin America
• Infrastructure in place to support revenue growth
• Experienced and bottom-line focused management team
