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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowShares of Brightpoint Inc. rose 10 percent this morning, the first trading since the company late yesterday announced a sharp drop in first-quarter profit. The increase suggests that despite the weak results, many investors believe long-term prospects for the Plainfield-based distributor of wireless phones are strong.
Brightpoint reported that profit fell 78 percent, to $1.9 million, even though revenue rose 14 percent, to $642 million. Results were hit by a shift in product mix away from higher-margin logistics services to straight distribution.
The company recently purchased the Latin American and U.S. operations of Texas-based competitor Cellstar Corp. It soon will begin providing logistics services for T-Mobile.
Brightpoint also is buying Dangaard Telecom, Europe’s largest wireless phone distributor, for more than $300 million.
Brightpoint shares traded late this morning at $14.05, up $1.33 on the day.
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