InfoSonics Enters into Agreement to Establish Wireless Handset Engineering and Design Facility in China
May 06 2010 - 3:40PM
Business Wire
InfoSonics Corporation (NASDAQ: IFON), one of the premier
providers of wireless handset solutions serving Latin America,
today announced the execution of a Memorandum of Understanding with
KingRoger Technology Company Limited, a British Virgin Island
Company headquartered in Beijing, China (KingRoger).
Under this agreement, KingRoger will partner with InfoSonics’
newly created Beijing-based subsidiary, Verykool Wireless
Technologies Limited (VWTL), to provide engineering and design
services including second (2G) and third generation (3G) wireless
technologies for InfoSonics’ verykool® product lines. KingRoger
members will collectively hold an indirect minority interest in the
venture. VWTL’s operations are subject to securing necessary
authorizations from applicable governmental authorities.
“We are enthusiastic about the long term potential for this
relationship,” stated Joseph Ram, president and CEO of InfoSonics.
“We will be able to invest in and establish a new engineering and
design facility based in China where KingRoger will provide the
requisite technical expertise and know-how to develop new and
exciting products in China for sale and distribution to Latin
America as well as other markets worldwide.
“This agreement is part of our overall strategy to enhance our
verykool® product lineup and add new models to our current product
offering throughout Latin America. We believe this presence in
Asia, will also give us greater flexibility as we look to enter new
markets with our verykool® product offerings.”
About InfoSonics
Corporation
InfoSonics is one of the premier providers of wireless handsets
solutions 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.
About verykool®
InfoSonics’ verykool® proprietary line of mobile phones covers a
full spectrum of product offerings, including entry level handsets
and full featured phones, both mid-tier and high end. The verykool®
phones are compact, stylish handsets, available in multiple fashion
color options and filled with the most popular features demanded by
consumers, such as, audio and multimedia players; cameras; PC Sync;
expansion memory slots; and GSM ‘world phone’ standards. InfoSonics
is initially focused on selling its proprietary verykool® line of
products to carrier customers in Latin America, with the potential
for geographic expansion opportunities in the future. To view
InfoSonics’ verykool® product lineup please visit www.verykool.net
and our verykool® members participation zone at
www.verykool.net/zone.
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 within the meaning of the Private Securities Litigation
Reform Act of 1995, including, without limitation, 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 and
uncertainties. These risks and uncertainties, 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, and include, without
limitation: (1) intense competition internationally, including
competition from alternative business models, such as
manufacturer-to-carrier sales, which may lead to reduced prices,
lower sales, lower gross margins, extended payment terms with
customers, increased capital investment and interest costs, bad
debt risks and product supply shortages; (2) dependency on Latin
American sales a majority of which are from Argentina, which may be
significantly reduced or eliminated as a result of the recently
adopted tax/duty by Argentina; (3) the ability of the Company to
successfully design, manufacture, introduce and sell its verykool®
products and the related inventory risk of such products; (4) the
ability of the Company to successfully establish, integrate and
operate its new design facility in Beijing, China, (5) extended
general economic downturn; (6) inability to secure adequate supply
of competitive products on a timely basis and on commercially
reasonable terms; (7) foreign exchange rate fluctuations,
devaluation of a foreign currency, adverse governmental controls or
actions, political or economic instability, or disruption of a
foreign market, including, without limitation, the imposition,
creation, increase or modification of tariffs, taxes, duties,
levies and other charges and other related risks of our
international operations, such as the recently adopted tax/duty
change in Argentina on certain electronics (including cellular
phones) which could significantly increase selling prices to our
customers and end-users; (8) 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; (9) 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; (10) significant changes in supplier terms
and relationships; (11) termination of a supply or services
agreement with a major supplier or product supply shortages; (12)
continued consolidation in the wireless handset carrier market;
(13) loss of business from one or more significant customers; (14)
customer and geographical accounts receivable concentration risk
and other related risks; (15) rapid product improvement and
technological change resulting in inventory obsolescence; (16)
terrorist or military actions; (17) the loss of a key executive
officer or other key employees; (18) changes in consumer demand for
multimedia wireless handset products and features; (19) our failure
to adequately adapt to industry changes and to manage potential
growth and/or contractions; (20) seasonal buying patterns; (21)
uncertain political and economic conditions internationally; (22)
the resolution of any litigation for or against the Company; and
(23) 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 and condition 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, 2009; 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.
Cool Holdings (delisted) (NASDAQ:IFON)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cool Holdings (delisted) (NASDAQ:IFON)
Historical Stock Chart
From Jul 2023 to Jul 2024