Zagg Denies Blog Accusations
Accessories maker Zagg Inc. has struck back against a financial blog that alleged the company has been dishonest about its finances.
“These posts purposefully distort information and erroneously reference financial results that reflect a lack of understanding of US Generally Accepted Accounting Standards and its application,” Zagg said in a statement Wednesday. “The comments contain accusations of manipulation of financial results, which the company vehemently denies.”
Zagg is presumably referring to a post published last week by Nicholas Pardini of Seeking Alpha, who alleged that “ZAGG falls woefully short of its projected earnings… is not selling enough products to match its revenue estimates, the revenues they do take in fail to make the company profitable, and inventory amounts are excessive for a product that can be produced as quickly as a screen protector.”
Zagg also said it will file a formal SEC complaint related to the trading in ZAGG stock and options on May 3- the day Pardini’s post was published- and May 7.