Monster Digital, Inc. Reports Financial Results for the First Quarter Ended March 31, 2017

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SIMI VALLEY, CA -- (Marketwired) -- 05/19/17 -- Monster Digital, Inc. (NASDAQ: MSDI), ("Monster Digital" or "the Company"), which develops, markets and distributes Monster DigitalĀ® branded products for use in high-performance consumer electronics, mobile products and computing applications, today announced its unaudited financial results for the quarter ended March 31, 2017.

Monster Digital reported revenues of $951,000 for the three-month period ended March 31, 2017 compared to revenues of $538,000 for the comparable 2016 fiscal period. The Company's product mix has shifted significantly away from memory products to higher margin sports action and VR camera products.

The Company also announced it has retained New York City-based investment bank, The Benchmark Company, LLC ("Benchmark") as financial advisor, to assist the Board of Directors in conducting a comprehensive review of strategic alternatives. The review is focused on maximizing the value of the Company, and the possible alternatives under review may include a business combination or merger, an equity or debt financing, disposition of assets or similar alternative. No assurance can be given that any strategic alternative will be carried out.

David H. Clarke, Chairman and CEO, commented, "Although we believe we have excellent products offered under a well known brand name, we have clearly had difficulty getting sufficient sales traction. Recent months have seen increasing competition in sports action and virtual reality cameras resulting in declining prices for most of our products. Under these circumstances, it is entirely appropriate to conduct a review to determine if there is a course of action which will enhance our prospects and value to our shareholders."

Financial Highlights for the First Quarter Ended March 31, 2017

Net sales for the three months ended March 31, 2017 increased approximately 77% to $951,000 from $538,000 for the three months ended March 31, 2016. In the three months ended March 31, 2017, sales in our action sports camera line represented 87% of our total sales. In three months ended March 31, 2016, sales in our action sports camera line represented 24% of our total sales.

Gross profit as a percentage of net sales was (4.9%) in the three months ended March 31, 2017, compared to a gross profit 8.7% in the three months ended March 31, 2016. In the current quarter of 2017, as we continue to disengage from lower margin memory product sales, we have sold certain memory product items for which we no longer have a customer base at a negative gross margin and have reduced prices on certain sports action and virtual reality cameras in order to be more competitive.

The net loss for the three months ended March 31, 2017 was approximately $2.2 million, or $(0.28) per basic and diluted share, compared to a net loss of approximately $1.9 million, or $(0.50) per basic and diluted share, for the three months ended March 31, 2016.

About Monster Digital, Inc.
Monster Digital develops, markets and distributes Monster branded products for use in high-performance consumer electronics, mobile products and computing applications. The Company designs and engineers premium action sports cameras and accessories, in addition to advanced data storage and memory products for professionals and consumers.

Monster and Monster Digital are registered trademarks of Monster Products, Inc. in the U.S. and other countries.

For more information about the company, please visit http://www.monsterdigital.com

About The Benchmark Company, LLC

The Benchmark Company is a full-service investment banking and financial advisory firm with a sales & trading platform servicing institutional clients in all major markets in the US and internationally; a team of research analysts covering companies in the Technology, Defense & Homeland Security, Media, Publishing, Broadcasting, Business Services, Consumer/Retail, China and Healthcare sectors; and an investment banking team providing corporate finance and advisory services to small- and mid-sized companies. Benchmark is headquartered in New York with offices in 10 other financial centers in the US.

For more information about The Benchmark Company, LLC, visit its website at http://www.benchmarkcompany.com

Forward-Looking Statements:
Some of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Such forward looking statements include, but are not limited to, those such as: maximizing the value of the Company and possible alternatives under review. These statements relate to future events, future expectations, plans and prospects. Although Monster Digital believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. Monster Digital has attempted to identify forward-looking statements by terminology including "possible", "may", "believe" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including those discussed under the heading "Risk Factors" in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2017 and in our Quarterly Report on Form 10-K filed with the Securities and Exchange Commission on May 19, 2017. Any forward-looking statements contained in this release speak only as of its date. We undertake no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.

More news and information about Monster Digital, Inc.

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Marketwire: 13:00 GMT Friday 19th May 2017

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