- Growing fan base and increasing market awareness generate a 235% improvement in online sales -
BURNABY, BC, Jan. 12, 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, today announced that it exited Q2 fiscal 2016 with an online fan base of 473,000 fans, up 32% from the end of Q1 fiscal 2016.
"With the further expansion of our HITCASE fan base and growth in our overall market awareness, we are seeing a continued increase in online sales activity," said Brooks Bergreen, CEO of HIT Technologies, Inc. "In Q2 fiscal 2016, we also benefited from the holiday shopping season, and as a result of these combined factors, our online HITCASE sales increased roughly 28% sequentially and about 235% year-over-year. We saw strong online sales across the quarter; November marked a new record, only to be beat by our December results. We expect our overall Q2 fiscal 2016 year-over-year sales growth rate to be similar to Q1, with increased online sales more than offsetting the expected decline in our legacy product sales."
HIT added 114,000 fans in Q2 fiscal 2016, bringing the total additions to 228,000 year-to-date, an almost 100% increase over 245,000 fans at fiscal 2015 year-end.
The Company's Q2 fiscal 2016 online sales order volume increased 34% sequentially, with the average order value consistent with Q1 fiscal 2016 at more than $150 per order, despite holiday promotional activity. HIT also expects sequential improvements in gross margin in the quarter, as the Company decreased shipping costs.
Bergreen added: "Given we have seen our online sales continue to gain momentum, our fan base keep getting bigger, and we have recently expanded our retail launch, our team is excited about the growth possibilities for the year ahead. Further, with launches of our flagship products, HITCASE PRO-6 and SNAP complete, and our go-public transaction costs behind us, we are delivering top-line improvements at an operating expense base that is relatively in line with Q1-F2016 levels. Going forward, we will focus on building our attach rates to the more than 200 million iPhones expected to ship this year. In addition, we expect to be well positioned in the market for the anticipated iPhone 7 launch in September 2016. Importantly, we believe with the development work we did for the HITCASE PRO-6, we will have lower costs and faster turnaround."
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., [email protected], www.hitcase.com/invest; Kristen Dickson, NATIONAL Equicom, [email protected], +1 416-848-1429