Brightpoint North America L.P, an operating arm of a leading distributor of wireless devices, Brightpoint Inc. ( ) , recently announced the renewal of its contract with MetroPCS Communications, Inc. ( ) owned MetroPCS Wireless, Inc.

As per the deal, Brightpoint will provide logistic assistance to MetroPCS-owned store, agents and its retail partners all across the U.S. Brightpoint is expected to provide services like receiving of orders from customers and proper delivery of the ordered goods. Additionally, the company will also offer storage as well as customer credit facilities to MetroPCS Wireless customers.

Brightpoint already has a solid supply-chain agreement with large mobile handset developers such as Research In Motion Ltd. ( ) , Nokia Corp. ( NOK - Analyst Report ) , and HTC Corp., Such relationships will further strengthen its network and deliver improved services to its clients.

Recently, Brightpoint is witnessing various challenges as the company reduced its financial forecast for fiscal 2012. This is the second time that the company has lowered its 2012 financial guidance, which was provided at the end of 2011. We believe that loss of a major client in the company’s high-margin Logistics segment in the U.S is one of the prime reasons for such defensive guidance. Moreover,global economic volatility and weaker margins on product sales coupled with the recent trend of consolidation among telecom carriers may act as negative catalysts for the company in the long term. We, thus, maintain our long-term Underperform recommendation on Brightpoint Inc.

Currently, Brightpoint Inc. has a Zacks #5 Rank, implying a short-term Strong Sell rating on the stock.

Brightpoint Inc. is a leader in global distribution of wireless devices and the provision of customized logistic services to wireless equipment manufacturers and carriers.