would results in Since minutes the take in performance and today, expectations comments on few like Thanks, QX some call. quarterly supplemental included guidance communicated issued earlier EBITDA are I line to additional financial with add financial on our last our many details performance. financial our just net the and Chris. adjusted a sales to information of were
year-to-date So performance. I’ll our on focus my remarks
to forward first Net decreased due a pad decreases the compare branded XX% sales in mophie product sales by by partially HALO the expected of These BRAVEN and impact products. during OEM and offset charge sales been half of XXXX increases, the prior to a related year. have tariff tariff million, pulled load-ins difficult GearX, into in smartphone advance approximately driven of decrease $XXX
has and by in are been GearX not of gross sold margin margin discounts improvements. it sales our cost significantly, flat Gross profit continued sales by changed protection, reduction in products however, goods and approximately a focus of sales category. has highest HALO screen as offset Being of of impacted increase credits decreases XX%, percentage driving and in remain a an on net profit at
first the to amortization and BRAVEN increased increased assets, compared HALO GearX, impact due half $X.X expenses approximately year. million the year, last last which compared including Operating intangible of to XX% the to primarily of by
saw we marketing through increased channels internal our our and to addition, In ad online invest we’ll brands channels. additional exceeds and portfolio support closely funds and monitor products including return We of online our rates. hurdle growing spend marketing investment generated profit Amazon the when on our
to accelerated linked anticipated integration the the launch higher GearX, On completed also did continued of During cost quarter, costs as than and to unanticipated one during transition the we second and And quarter On experience the including during at Latin charges product key primarily in our quarter. operating America business. support operations the InvisibleShield second European costs InvisibleShield placement the launches to incurred and GearX customer second marketing we Demand investments, some into two growth related Demand
$XX.X which increase provided on sales EBITDA was lower earnings with discussed. a an in period, in was guidance The call. already expenses we the the decrease last Adjusted net and versus million of consistent the $X.X prior operating negative is result million year
sheet, driven factors. days two AR ago, and the increased balance is year to primarily from DSOs the to accounts XX% XX The $XXX increased and increase to Turning XX to days. compared million receivable DSOs in by
approximately direct-to-sales Verizon XX-day quarter, receivable. the increased which significantly are of to direct second payment AR during currently terms. Verizon on XX% First, represents accounts outstanding
good. very which XX% in period due terms. sales incremental business, are increase incremental recent year. of to at increased our receivables to quality Over mix was second of in – is same The with XX-day international the the an reason inventory to associated payment Inventory our generally compared approximately acquisitions. our $XXX half due to million of last The remains increase an
the be be inventory its hand to during and XXXX. sold saw tariff skews down continue slowing some impacts of the an the to projected inventory in excess XXXX XXXX Despite that to additional increased the of has second product In first of international sells the addition, mitigate to the half growth, year-over-year inventory some inventory will position, OEM throughout to and to of handset helped half current year. is the we support during which approximately XX% on of due increase
excluding the were approximately Consolidated inventory acquisitions turns year five in X.X times period. down prior times, from
low-sevens back historical improvement time to the the turns in expect our by exit We year. high-sixes the we and
In of first and stock share the terms ZAGG in company million the the repurchased half, in million last XX repurchase, during months. approximately $X approximately $XX
our last in have the traded to buybacks. Given levels stock active out liked prices the stock more quarter, been would we over have
the on However, approaches as repurchase. restricted $XXX to in amount line our credit invest outstanding share million, ability our we’re in
inventory waiting given repurchased. prioritized half addition, investments half of our In needed in second the share that forecast the back we ahead our that of
M&A. the term capital previously, long our use repurchase share debt of and share repurchase, tuck-in discussed focus long we’ve is between As balance term we’ll and service
today second alternatives, debt. be the the focus on that announcement focus Given acquisitions, our we’ll servicing is our half the execution strategic and considering recent on
less Net $X three approximately last fund cash operations, share million to increase acquisitions $XX million consolidated newly of $XX with particularly to acquired compared increased brands. year. million, debt, was which and ongoing used to debt million our The cash for repurchase due $XX is for
months, and for end share last quarter. million $XX had the debt of net would paid acquisitions have cash company approximately during the first the Excluding at repurchased, the of XX
of to the his to the plan growth, discretionary These categories. on prepared the touched of discussing recent to profitable in wanted initiatives XXXX, restructuring headwinds of and reduction of quarter quarter. initiated Chris minutes approximately the few XX% I global that remarks. in acquisitions cost long response for we headcount of part term and into company the acceleration operating third XXXX of include In headcount, the of during a first extended restructuring reductions synergies which expense second our position profitability spend from a the number the
net guidance. restructuring third spread XXXX our of include charge gross second rest the a million. has to are expected severance The one-time over They’ll million realize approximately totaling of results reductions which savings $X.X year will into provide approximately quarter’s, annualized headcount $X and incorporated been $X savings of XXXX XX% full some we’d annual expect XXXX. operating approximately in to operating these to expenses achieved be to gross of From sales half XX% during in cost an savings year expense and be the of million perspective, the XXXX. back expect
company the tariffs, Trump to discuss impact recent we’re last quickly doing news I the also late wanted as what to the a administration of address given from week.
a September recap over and and of pad last products charging and quick our the of increases sourced let protection Chinese give was wireless impact impact factories. tariff the XX% began First, me XX year, tariff to the ZAGG XX from levied to On a months. screen last
May able tariff with worked wireless the burden For On from competitive and and protection this we tariff suppliers XX%. we achieve. XX% to product absorbed with savings, cost charge on to reasons, offset screen the were largely to increased administration pads XX, which Trump XXXX, rates
to would impacted be along that working gross communicate will of these we these impact with price that products the passed wholesale and customers for increase. began the Given profit, costs
remain to with to believe on XXXX effective goods customers. from XX%. remaining margin would current estimates billion and Trump a this. increase tariffs President of $XXX the imported Last we’re We by discussions achieve is September on dollar that Thursday, goal tweeted given Our path X, China neutral, and
of For China. our in remainder sourced ZAGG, the that product includes
taken, goal dollar increases wholesale alternate further factories them working approaching increases China, to remain The manufacturing we’re tariff we’ll price. actions neutral. to previous Consistent we’re notify our of product unmitigated customers be and costs, is in margin reduce to along exploring with ultimate the passing closely outside through that with facilities
changed and XXXX wanted to spend our from discussing Last, minutes what few a call. our last guidance I for
reduction experienced and year I’ve experienced end smartphone for but our handset first the number and thus launches we’ve the OEM of sales, we’ve half which fall the the that headwinds reduced throughout mentioned, during Chris a year. far As the continued reductions with last including soften of consistent in has process assumed for forecasting the to June, device launch sell-through Until up.
during A the sell-through to is continue soften half. first
Starting end fall OEM for sell-through customers and and below July, the original our June customer as continued the also we that specific load-ins for forecast and Our customer launches of fall decrease. – launches receiving began to forecast the subsequent for forecasts at has expectations. the initial into well found
until sales releases OEMs. earnings reports and the the by will for in unit component fall available both echoed recent is to in in content appears second smartphone industry research a manufacturers projected Generally, expected has are originally XG outlook been and networks than as lower of upgrade half analysts it smartphone consumers delay from and This sentiment XXXX XXXX. be phones, many
transaction Given specific our XXXX Gross to still tax customer BRAVEN earnings estimated impact $XXX a the our a a Net previous range. these per $X.XX amortization outstanding. be related we compared per of $X made of per range on million range guidance and expectation now the to million, range including a of an $XXX expenses adjustments expected be to to million full $X.XX shares a the GearX, as $X.XX million to which of now share, of Operating previous feedback, $XXX guidance HALO excludes down to sales. is approximately share, percent headwinds are million. XX.X be effected to from to of estimated to mid-XXs share, and from year sale in is $XXX margins
tax-related per acquisition-related – easier as it help of with We expenses of share comparison apples-to-apples an year, prior use provide the excludes earnings operating sorry impact to the expenses.
We at be progressed XX% tax time half. the continue as we to approximately and this updates provide through we’ll to annual our rate estimate second
estimate half to historical product to the $XX $XX power protection, margin majority million is be sales highest million. million than and of of sales vast our for our in category $XX gross margins net is directly Adjusted average second forecast power. projected EBITDA for the $XX down previous to to The decrease XXXX linked million products with at of screen estimated of higher new from
operating operating achieve resulted profit of cost during loss these expense, coupled expenses are we’ll prior our The sales fixed with high guidance. the the to our compared other of the half from activities. Although, savings in reduction largely has restructuring second margin that
Free With half, that cash of the than estimated Thus, projecting revenue at expense, million. load-ins the with the $XX to our the of adjusted second XX% EBITDA the half total. as the consistent quarter. we’d expect CapEx flow, QX, cash quarter occur second which HALO is fact the and tax we to mix revenue historical QX bulk approximately approximately be average will we’re to fairly during minus we other fourth regard in expect QVC be to timing of XX% the defined third
we that, With call the open for will questions. up now
