Large Order Precedes Expected Midsummer Sales Rush
LOS ANGELES, CA--(Apr 29, 2015) - Mobile wireless technology company Spiral Toys (STOY) announced an initial purchase order of 500,000 units of its flagship CloudPets toy line from partner Jay@Play, an established global distributor servicing retailors such as Walmart, Target, TRU, Kmart and Bed Bath and Beyond.
This marks the largest order of Spiral-enabled products to date, and is a result of the CloudPets April direct response campaign. Spiral's proprietary electronic Bluetooth Smart communications module enables each CloudPet toy to wirelessly connect with smartphones and tablets, and delivers a "message you can hug" from anywhere in the world.
"The initial release of 500,000 units to North America's preeminent retailers is an enormous accomplishment for CloudPets, and is an excellent indicator of the strength of our strategic plan," said Spiral president and CEO Mark Meyers. "Spiral's three-pronged revenue strategy, beginning with the device's manufacture, and continuing through the entire lifecycle of the device, is proving to be a very successful model. In addition to the 500k unit order, we are currently in process of filling orders in response to our television advertising campaign which began earlier this month."
This three-pronged revenue strategy includes hardware and licensing fees for Spiral technology, the sale of the physical toy to the consumer, and the ongoing revenue from in-app purchases and digital content creation from that end-user.
"We believe that the CloudPets orders will raise the manufacturing revenue outlook for Q2 and Q3, as well as digital revenue in Q4," said Meyers. "We're very excited by this initial purchase order and believe it will pave the way for the continued development of additional lines of business."
Spiral works with several suppliers and factories in southern China to manufacture the modules used for CloudPets toys. The formation of Spiral's Hong Kong entity earlier this year has strengthened the company's relationship with Chinese manufacturers and suppliers, and has enabled them to receive favorable pricing.
This substantial order follows the launch of a large-scale, nationwide advertising campaign for CloudPets, which is running more than 3,800 individual commercials on the country's most popular children's television networks.
"It's fantastic to be able to announce such a significant milestone for Spiral Toys," said Meyers. "I'm certain this is the first of many orders on this scale, and a sign of Spiral's continued success."
Jay@Play, a division of Jay Franco and Sons, is the distributor behind the popular plush animal brands "CuddleUpPets," "Hideaway Pets," "Seat Pets" and more. Jay@Play International offers solution-based products that have been lauded by the toy industry, bloggers and the press. Established in 2004, Jay@Play is a Hong Kong-based company with a showroom in New York City. Their products are distributed internationally through companies that promote their brands on television.
About Spiral Toys
Spiral Toys (OTCQB: STOY) is a California-based company dedicated to developing, marketing, and selling products and mobile applications in the mobile-connected space. Spiral has developed several technology platforms that enable it to acquire and engage consumers in the sale and marketing of physical consumer products and toys.
Spiral collects revenue on both the physical purchase of goods and the sale of digital content through Apple's App Store and the Google Marketplace. Founded in 2011 by a former senior executive at Disney and Sony, the company has developed an integrated hardware/software/cloud solution that enables mobile-connected entertainment.
Spiral's mobile-connected entertainment platform connects physical items to today's top mobile devices through wireless technologies, creating a whole new type of interactive user experience. Spiral sells its products worldwide, and is developing additional applications based on its platform technology for several different verticals within the entertainment industry. The company also acts as co-developer with major entertainment studios.
This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to expectations for the performance of Spiral Toys. The terms "expects", "would", "will", "believes", and similar terms are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by Spiral Toys in light of its experience and its perception of current conditions and expected future developments, as well as other factors that Spiral Toys believes are appropriate in the circumstances. Many factors could cause Spiral Toys' actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. These risk factors and others relating to Spiral Toys that may cause actual results to differ are set forth in Spiral Toys' periodic filings with the U.S. Securities and Exchange Commission (copies of which filings may be obtained at www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on Spiral Toys' forward-looking statements. Spiral Toys has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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