- 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.
Cautionary Statement
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