Brightpoint Posts Profit

Shares rise 4.8% after hours.
Author:
Publish date:

Brightpoint

(CELL)

swung to a profit in the third quarter and said revenue easily beat expectations by rising 16% year over year.

On the top line, the wireless-device distributor had $633.7 million for the three months ended Sept. 30, up from just under $545 million a year ago. The company earned $8.8 million, or 17 cents a share, in the latest quarter, reversing last year's loss of $6.2 million and 12 cents a share.

Income from continuing operations was $8.9 million, or 18 cents a share, compared with $8.3 million, or 17 cents a share, in the third quarter of 2005.

Analysts surveyed by Thomson Financial were looking for an adjusted profit of 18 cents and sales of $590.5 million. Shares of Brightpoint rose 4.8% to $12.20 in after-hours trading Wednesday.

For the fourth quarter, the global wireless industry should sell 5% to 7% more devices than the estimated 243 million units sold in the third quarter, Brightpoint said.

"Based on our most recent outlook, I now expect the units handled by Brightpoint for 2006 to be in the range of 53 million to 55 million units," said Robert J. Laikin, Brightpoint's chairman and chief executive.

"On a year-over-year basis, we are on track to grow faster than the global wireless device industry in terms of unit growth," he continued. "As I look towards 2007, I remain bullish on the global wireless device industry and expect a sell-in range of 1.05 billion to 1.15 billion units for 2007 representing high double-digit growth year over year."