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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowFalling demand for wireless devices and discounted prices caused locally based Brightpoint Inc.’s revenue to drop 36 percent in the fourth quarter of 2008 compared with the same period a year ago, the company said late yesterday.
The Indianapolis-based mobile technology distributor reported a loss of $344.4 million on $1 billion of revenue for the period that ended Dec. 31. However, a write-down in the value of assets purchased in the acquisition of Dangaard Telecom in 2007 prompted the majority of the loss.
Brightpoint also announced a plan to reduce spending this year by as much as $45 million by eliminating executive bonuses and reducing staff awards. The company will implement a hiring freeze, freeze employee base pay and reduce its global work force by at least 220 positions, or 7 percent. Brightpoint already cut staff by 10 percent in June.
“Given the uncertainty caused by the turmoil in the global economy, our focus in 2009 will be on the things within our control: managing our balance sheet, reducing our debt, and controlling spending,” CEO Robert J. Laikin said in a statement.
In addition, Brightpoint’s board of directors voted yesterday to terminate the company’s shareholders rights plan, or “poison pill” provision. The action accelerates the current expiration date from April 2014 to Feb. 27 of this year.
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