Brightpoint posts Q1 growth

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US handset distributor Brightpoint recorded upturns in its first quarter results during 2010, which chief executive Robert Laikin said “reflect the execution of our debt and spending reduction initiatives”.

Brightpoint’s revenue was $795.3 million (£538.4m) during the first quarter of 2010, an increase of 15 per cent compared to the first quarter of 2009, and a decrease of 12 per cent compared to the fourth quarter of 2009.

Brightpoint said its revenue typically declines 13-18 per cent sequentially during the first quarter with seasonal impact on its distribution business.

Income from continuing operations was $4.7 million (£3.2m) in the first quarter, compared to a loss of $2.1 million (£1.4m) in the first quarter of 2009. Income from continuing operations was $21.4 million (£14.5m) in the fourth quarter of 2009, which included a $7.7 million (£5.2m) non-cash, non-taxable gain on the settlement of an indemnification claim with NC Telecom Holding.

Profit (EBITDA) was $17 million (£11.5m) in the first quarter of the year, compared to $6.7 million (£4.5m) for the first quarter of 2009, and $31.9 million (£21.6 m) in the fourth quarter of 2009.

Units handled in the first quarter of 2010 reached 22.5 million, an increase of 21 per cent compared to the first quarter of 2009 and a decrease of seven per cent compared to the fourth quarter of 2009. Again, Brightpoint again cited the seasonal dip in trade.

“I am pleased with our financial performance in the first quarter of 2010,” said Laikin, who is also chairman of the board at Brightpoint.
“Our results reflect the execution of our debt and spending reduction initiatives in 2009 as well as the ramp up of recently announced distribution wins.

“Brightpoint remains well positioned to take advantage of wireless industry trends and we still anticipate our unit growth rate to exceed the top end of analyst expectations for the wireless industry for 2010.”

Last year, Brightpoint closed its French, Polish and Turkish businesses, and carried out a number of initiatives aimed at saving between $40-$45 million (£27-30.5m), as well as debt recovery actions intended to improve its working capital.

 

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