Shares 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.