| |
|
|
|
4350
Executive Drive, Suite 100 San Diego, CA 92121
|
858-373-1600
|
www.infosonics.com
|
Contact:
|
Jeffrey
A. Klausner
|
Mary
Magnani
|
|
Chief
Financial Officer
|
MKR
Group, Inc.
|
|
858-373-1600
|
415-829-7879
|
|
ir@infosonics.com
|
ifon@mkr-group.com
|
INFOSONICS
SECURES NEW CREDIT
FACILITY
OF $45 MILLION
SAN
DIEGO, CA, May 5, 2008
-
InfoSonics Corporation (NASDAQ: IFON), one of the premier providers and
distributors of wireless handsets and accessories serving Latin America,
announced today that it has agreed to a new two-year credit facility with Wells
Fargo Century, Inc., a subsidiary of Wells Fargo North America. Under the terms
of the agreement, the company has increased its available borrowing capacity
up
to $45 million. The amount available under the credit facility is based on
accounts receivable and inventory levels. This facility replaces the Company’s
existing $30 million credit facility with Wells Fargo HSBC Trade Bank, N.A.
“With
this expanded facility, we have the financial capacity to continue executing
on
our strategy to diversify revenue, enhance growth and geographic expansion
as
well as the potential to increase gross margin for the company as we prepare
to
meet the needs of our carrier customers,” said Jeff Klausner, Chief Financial
Officer of InfoSonics. “The confidence Wells Fargo has shown in InfoSonics is a
positive endorsement of our strategy and recognition of the market opportunities
that exist.”
About
InfoSonics Corporation
InfoSonics
is one of the premier providers and distributors of wireless handsets and
accessories serving Latin America. For the wireless telecommunications industry,
InfoSonics provides flexible and cost effective solutions, including product
assembly, purchasing, marketing, selling, warehousing, order assembly,
programming, packing, shipping, and delivery. InfoSonics supports manufacturers
in moving their products to agents, resellers, distributors, independent
dealers, retailers and wireless network operators in Latin America. For
additional information, please visit www.infosonics.com.
-more-
Cautionary
Statement for the Purpose of the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995
The
matters in this press release that are forward-looking statements, including
without limitation to statements about future revenues, sales levels, operating
income and margins, wireless handset sales, stock-based compensation expense,
gain (loss) in value of derivatives, cost synergies, operating efficiencies,
profitability, market share and rates of return, are based on current management
expectations that involve certain risks which, if realized, in whole or in
part,
could cause such expectations to fail to be achieved and have a material adverse
effect on InfoSonics’ business, financial condition and results of operations,
including, without limitation: (1) intense competition, regionally and
internationally, including competition from alternative business models, such
as
manufacturer-to-carrier sales, which may lead to reduced prices, lower sales
or
reduced sales growth, lower gross margins, extended payment terms with
customers, increased capital investment and interest costs, bad debt risks
and
product supply shortages; (2) inability to secure adequate supply of competitive
products on a timely basis and on commercially reasonable terms; (3) foreign
exchange rate fluctuations, devaluation of a foreign currency, adverse
governmental controls or actions, political or economic instability, or
disruption of a foreign market, and other related risks of our international
operations; (4) the ability to attract new sources of profitable business from
expansion of products or services or risks associated with entry into new
markets, including geographies, products and services; (5) an interruption
or
failure of our information systems or subversion of access or other system
controls may result in a significant loss of business, assets, or competitive
information; (6) significant changes in supplier terms and relationships; (7)
termination of a supply or services agreement with a major supplier or product
supply shortages; (8) continued consolidation in the wireless handset carrier
market; (9) extended general economic downturn; (10) loss of business from
one
or more significant customers; (11) customer and geographical accounts
receivable concentration risk; (12) rapid product improvement and technological
change resulting in inventory obsolescence; (13) future terrorist or military
actions; (14) the loss of a key executive officer or other key employees; (15)
changes in consumer demand for multimedia wireless handset products and
features; (16) our failure to adequately adapt to industry changes and to manage
potential growth and/or contractions; (17) future periodic assessments required
by current or new accounting standards such as those relating to long-lived
assets, goodwill and other intangible assets and expensing of stock options
and
valuing gain or loss on fair value of derivatives may result in additional
non-cash income or expenses; (18) seasonal buying patterns; (19) dependency
on
Latin American sales; (20) uncertain political and economic conditions
internationally; (21) the impact, if any, of changes in EITF 00-19 or SFAS
133
guidance as it relates to warrants and registration rights and SFAS 123R as
it
relates to stock options; (22) the resolution of any litigation against the
company; (23) the ability of the Company to successfully introduce and sell
its
verykool® products and the related inventory risk of such products and (24) the
ability of the Company to generate taxable income in future periods in order
to
utilize and realize any quarterly tax benefits recorded. Our actual results
could differ materially from those anticipated in our forward looking
statements.
InfoSonics
has instituted in the past and continues to institute changes to its strategies,
operations and processes to address these risk factors and to mitigate their
impact on InfoSonics’ results of operations and financial condition. However, no
assurances can be given that InfoSonics will be successful in these efforts.
For
a further discussion of significant factors to consider in connection with
forward-looking statements concerning InfoSonics, reference is made to Item
1A
Risk Factors of InfoSonics’ Annual Report on Form 10-K for the year ended
December 31, 2007; other risks or uncertainties may be detailed from time to
time in InfoSonics’ future SEC filings. InfoSonics does not intend to update any
forward-looking statements.
####