Financial Results and Public Companies and Brightpoint and Manufacturing & Technology and Technology

Brightpoint profit dips but beats expectations

November 4, 2009

Wireless device distributor Brightpoint Inc. said late Wednesday afternoon that profit and revenue both fell in the third quarter because it sold fewer devices at lower prices.

Adjusted income from continuing operations was $10.8 million, or 13 cents per share, compared with $13.3 million, or 16 cents per share, in the same period last year.

Still, Indianapolis-based Brightpoint’s profit beat analysts’ expectations of 11 cents per share.

Revenue fell to $867.9 million, down 26 percent from the same period in 2008. But that was 21 percent better than the second quarter of this year due to an increase in distribution revenue from the Middle East and Singapore.

In a prepared statement, Brightpoint CEO Robert J. Laikin said he is pleased with the company’s third-quarter results in what continues to be an “extremely challenging” economic environment.

In February, Brightpoint announced a plan to reduce spending for the year by about $45 million. Through the first nine months, the company said it is on track to reach the goal. To help reduce costs, Brightpoint has reduced its global workforce by 220. It now employs about 2,700.

Company shares rose 10 cents Wednesday to $7.34.

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