- Sales growth supported by successful Best Buy Canada launch -
BURNABY, BC, Jan. 21, 2016 /CNW/ - HIT Technologies Inc. (TSXV: HIT) ("HIT" or the "Company"), which designs, develops, manufactures and distributes the world's most advanced adventure products for iPhone, announced record Q2 fiscal 2016 channel sales in addition to a successful launch with Best Buy Canada across all 192 locations and online.
"We saw increased channel sales momentum in the quarter, resulting in anticipated HITCASE retail and distribution sales increasing approximately 100% sequentially and year-over-year," said Brooks Bergreen, CEO of HIT Technologies, Inc. "Our strong channel sales were fueled by our success in adding more partners and distributors as well as increased sale traction with existing relationships. With record HITCASE sales via both online sites and channel partners in the quarter, we believe we will deliver solid total revenue growth, with expected overall Q2 fiscal 2016 revenue between $650,000 and $700,000."
HIT's expected total revenue, which includes legacy product sales, for Q2 F2016 represents a 60% to 70% improvement sequentially, and 50% to 60% increase compared to Q2 last year. HIT also expects Q2 F2016 gross margin to improve sequentially and over the prior year, as the Company decreased shipping costs. In addition, as previously reported, online HITCASE sales were at record levels in the quarter, with expected online sales increasing approximately 34% sequentially and roughly 235% over Q2 last year.
Bergreen added: "We have secured valuable retail and distribution support, including our largest retail partner launch to date, Best Buy Canada, in December 2015. With our growing sales traction in-store and online, in combination with our solid brand, content and online following, we are confident in our ability to continue to add more retail and distribution partners and drive increased sales with existing ones. We believe our channel partners have embraced our vision for HITCASE as a force multiplier for the iPhone, enabling it to be used as a true action camera and digital Single Lens Reflux camera. We are confident in our ability to continue to successfully capitalize on the exciting market opportunity ahead of us."
Forward Looking Statements
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of this news release. The information in this release about the Company's anticipated use of available funds, and the future plans and objectives of the Company are forward-looking information.
Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information.
This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, global economic climate; dilution; the Company's limited operating history; future capital needs and uncertainty of additional financing; the competitive nature of the industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology change; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; network security risks; the ability of the Company to maintain properly working systems; theft and risk of physical harm to personnel; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; and volatile securities markets impacting security pricing unrelated to operating performance. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.
About HIT Technologies Inc.
HIT Technologies, Inc. develops and markets a portfolio of products that transform Apple iPhones into high-performing, weather- and shock-resistant video cameras. Both its, flagship product, HITCASE PRO and its newer SNAP allows users to easily capture action photo and video content hands-free, using a variety of HIT Technologies' patented Railslide™ mounts that attach to virtually any surface. Swappable lenses and accessories provide a variety of perspectives otherwise unattainable while participating in adventure sports. HIT Technologies is headquartered in Vancouver, British Columbia, Canada and trades on the TSX Venture Exchange (TSXV: HIT). For more information about HITCASE, visit www.HITCASE.com. Search #hitcase on Instagram to see some of the amazing images created by HITCASE customers.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange ("TSX-V") nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy of this release.
SOURCE HIT Technologies Inc
For further information: For additional investor information, contact: Brooks Bergreen, CEO HIT Technologies Inc., firstname.lastname@example.org, www.hitcase.com/invest; Kristen Dickson, NATIONAL Equicom, email@example.com, +1 416-848-1429