Brightpoint Beats Zacks Estimate

Brightpoint Inc. (CELL) declared solid financial results for the third quarter of 2009. Quarterly total revenue of $867.9 billion was down 26% year-over-year but was an improvement of 21% sequentially. Third quarter revenue of $867.9 million was significantly above the Zacks Consensus Estimate of $748 million. The year-over-year massive decrease in revenue was mainly due to decrease in wireless devices handheld through distribution together with lower ASP. Sequential improvement in revenue was the result of an increase in distribution revenue from the Middle East and Singapore . 

On a GAAP basis, net income in the third quarter was $11.2 million or 14 cents per share compared to a net income of $5.5 million or 7 cents per share in the prior-year quarter. Adjusted net income (excluding special items) in the reported quarter was $9.8 million or 12 cents per share, well above the Zacks Consensus Estimate of 9 cents per share. 

Quarterly gross margin was 8.3% compared to 7.2% in the year-ago quarter. This reflects the aggressive cost cutting measures taken by management during the past one year. Selling, general, and administrative expenses, in the same quarter, were $55.7 million compared to $60.5 million in the prior-year quarter. Management has streamlined the operating cost structure to improve productive efficiency. During the third quarter, Brightpoint manages 21.6 million wireless devices compared to 20.1 million in the prior-year quarter. 

At the end of the third quarter, the company had approximately $80.3 million of cash & marketable securities on its balance sheet compared to $101.2 million at the end of the prior-year quarter. Total debt was $98.8 million at the end of the same quarter compared to $185.5 million at the end of the year-ago quarter. Brightpoint generated $10.9 million cash from operation during the reported quarter compared to $53 million in the prior-year quarter. Quarterly free cash flow (cash flow from operation less capital expenditure) was $5.1 million compared to $47.7 million in the year-ago quarter