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BrightPoint stock sinks on lower earnings report

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BrightPoint Inc. stock fell as much as 12 percent early Friday morning following disappointing first-quarter earnings that prompted the company to lower its 2012 financial forecast.

Shares rebounded slightly and were fetching $6.36 in late-morning trading, but nevertheless were down 9 percent from their $7 close on Thursday.

Rough conditions in the global wireless industry hurt earnings, the Indianapolis-based logistics provider reported Thursday afternoon after markets closed.

BrightPoint's net income was $3.2 million, or 5 cents per share, down significantly from $8 million, or 11 cents per share, in the year-ago quarter and from $15 million in the fourth quarter of 2011.

Revenue was $1.37 billion, up 23 percent from the same quarter a year ago, but down from the fourth quarter.

“We are reporting solid results in revenue and units handled for the first quarter of 2012," CEO Robert Laikin said in a prepared statement. “However, our customers and vendor partners faced significant competitive and economic pressures in the first quarter, which negatively impacted our profitability.”

BrightPoint handled 29.2 million mobile devices in the quarter. That was a 7-percent increase over the first quarter of 2011, but a 5-percent decrease from the fourth quarter.

BrightPoint said it expects per-share income for the year to range from 57 cents to 63 cents, which would be down from its previous forecast of 66 cents to 72 cents.

BrightPoint said it took $2.4 million in restructuring charges in the quarter, including the anticipated sale of its Reno, Nev., facility, plus severance expenses from downsizing. The company laid off an undisclosed number of people in its Americas division and had “continued consolidation and rationalization” in its Europe, Middle East and Africa and corporate divisions.

The company reported adjusted net income of 16 cents per share, which missed analyst estimates by 2 cents. However, it beat the average revenue estimate of $1.29 billion.

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  • Broghtpoint
    While shareholders and REGULAR employees suffer, top management was able to increase their siphoning by 11% over 2010. When will the top pull figure out they ain't getting done as leaders and leave? Annual meeting next week and always curious when I see the directors getting paid $250,000! a year just to show up 4 times per year and, as you can see, do nothing to turn this company around. Bitter, oh yeah, since my BP stock has tanked. Good ole boy clubs more concerned aboyt their own parachutte.

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  1. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

  2. My responses to some of the comments would include the following: 1. Our offer which included the forgiveness of debt (this is an immediate forgiveness and is not "spread over many years")represents debt that due to a reduction of interest rates in the economy arguably represents consideration together with the cash component of our offer that exceeds the $2.1 million apparently offered by another party. 2. The previous $2.1 million cash offer that was turned down by the CRC would have netted the CRC substantially less than $2.1 million. As a result even in hindsight the CRC was wise in turning down that offer. 3. With regard to "concerned Carmelite's" discussion of the previous financing Pedcor gave up $16.5 million in City debt in addition to the conveyance of the garage (appraised at $13 million)in exchange for the $22.5 million cash and debt obligations. The local media never discussed the $16.5 million in debt that we gave up which would show that we gave $29.5 million in value for the $23.5 million. 4.Pedcor would have been much happier if Brian was still operating his Deli and only made this offer as we believe that we can redevelop the building into something that will be better for the City and City Center where both Pedcor the citizens of Carmel have a large investment. Bruce Cordingley, President, Pedcor

  3. I've been looking for news on Corner Bakery, too, but there doesn't seem to be any info out there. I prefer them over Panera and Paradise so can't wait to see where they'll be!

  4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

  5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. http://www2.hamiltoncounty.in.gov/publicdocs/Campaign%20Finance%20Images/defaultfiles.asp?ARG1=Campaign Finance Images&ARG2=/Brainard, Jim

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