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InfoSonics and LG Partner to Provide Handsets for the Caribbean and Select Countries in Latin AmericaSAN DIEGO --(Business Wire)-- InfoSonics Corporation (NASDAQ:IFON), one of the fastest growing distributors of wireless handsets serving Latin America and the United States, announced today that it will be distributing handsets for LG Electronics in the Caribbean and select countries in Latin America. InfoSonics has already received approval, certification and purchase orders from carriers in the region and will be delivering its first shipments in the coming weeks. "The addition of the LG handsets to our existing product line-up provides InfoSonics with a broader selection to offer our carrier customers," stated Joseph Ram, President and Chief Executive Officer of InfoSonics. "We believe the LG products will enable us to increase our overall volume in the Caribbean region." "We are pleased to be partnering with InfoSonics, as we feel their top quality services and facilities combined with their investment in the region, understanding of the carriers and the overall knowledge of the market should create a successful partnership between the two companies," stated Howard Park, Director of Mobile Communications for LG Electronics Latin America. About InfoSonics Corporation InfoSonics is one of the fastest growing providers of wireless handsets and accessories. It sells OEM and proprietary handsets and accessories to network operators in Latin America and the United States. Additionally, InfoSonics provides flexible and cost effective solutions including product design and development, product certification and homologation, product assembly packaging and logistics, marketing campaigns, warranty services, and end user support. For more information, please visit http://www.infosonics.com. Cautionary Statement for the Purpose of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995 The matters in this report 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; and (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 (22) the resolution of any litigation against the company. 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, 2005 and its Quarterly Report on Form 10-Q, as amended, for the quarter ended September 30, 2006; 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. |
