SOURCE: Spiral Toys, Inc.

SPIRAL TOYS, INC.

December 29, 2015 09:15 ET

Spiral Toys and CloudPets Have a Happy Holiday -- Now Turn Focus to 2016 and Beyond

LOS ANGELES, CA--(Marketwired - Dec 29, 2015) - Spiral Toys (OTCQB: STOY), a leading provider of mobile-connected, wireless entertainment technology, issued an update on its flagship mobile-connected plush toy, CloudPets, reporting over 60,000 downloads of its CloudPets Mobile App on Christmas Day.

2015 CloudPets Highlights

  • Spiral launched its first major retail product, CloudPets, in the U.S. and Europe, delivering over 1.3 million CloudPet units to its distribution partners.
  • Several major retailers are currently selling CloudPets including Walmart, Target, Toys"R"Us, Amazon and Bed Bath and Beyond.
  • CloudPets was featured on "The View" as one of the most anticipated toys for the 2015 holiday shopping season.
  • CloudPets Mobile App was downloaded over 60,000 times on Christmas Eve and Day.
  • Over 300,000 messages were sent on Christmas day via CloudPets' interactive connected mobile app platform.
  • Over 2 million messages in total have been sent from around the world using CloudPets.

Management Commentary
"The continued demand for our flagship connected product, CloudPets, is a reflection of our successful business model," commented Spiral Toys' CEO Mark Meyers. "More importantly, we are confident that we can apply this platform to other products within the toy industry and beyond."

"The commercial success of CloudPets has been the result of many initiatives including our unique Bluetooth Low Energy communication platform and our robust sales distribution which includes leading national retailers such as Walmart, Target, Toys"R"Us, Amazon and Bed Bath and Beyond.

"As we look toward 2016 and beyond we will continue to rollout new CloudPet experiences -- including digital content on our CloudPets Mobile App as well as additional CloudPets physical products. As the community of our mobile app users continues to grow, we plan to further shift our focus to monetizing this community through the sale of digital content via our 'freemium-model' mobile app.

"While we are still in the early stages of generating meaningful revenue from the sale of digital content, during the holiday weekend we saw a significant increase in paid downloads. We are encouraged with the early success of our monetization strategy and believe this high-margin revenue stream will positively impact our 2016 results."

"With our platform proving successful here in the U.S., we also launched CloudPets into Spain, with the CloudPets Mobile App available for download in Spanish and Portuguese. We believe there are significant opportunities for growth in the international markets, especially with our recently acquired content licenses from Rosetta Stone.

"The core focus of Spiral Toys remains creating unique digital experiences around everyday items that leverage our proprietary connected platform. As we look forward, we are on track to launch six new products in 2016. We plan to announce our full suite of 2016 products at the New York Toy Fair -- which takes place this February. We expect to bring three new products to market during the first half of 2016."

"Additionally, our recently expanded management team is working hard on multiple strategic initiatives including content licensing which will bring additional characters and titles onto our digital content platform."

About Spiral Toys
Spiral Toys (OTCQB: STOY) is a California-based company with a business, founded by a former senior executive of Disney and Sony, focused on developing and marketing products and mobile applications in the mobile-connected space. Spiral's mobile-connected entertainment platform connects physical items to today's top mobile devices through wireless technologies, creating a new kind 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. 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. The company also acts as co-developer with major entertainment studios. For more information, visit www.spiraltoys.com.

Forward-Looking Statements
All statements in this press release that are not based on historical fact are "forward-looking statements." 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.

Contact Information

  • Company Contact:
    Mark Meyers
    CEO
    Spiral Toys
    Tel (800) 598-6845
    Email Contact

    Investor Relations:
    Michael Koehler
    Liolios
    Tel (949) 574-3860
    Email Contact