Brightpoint Inc. (CELL, Financial) filed Quarterly Report for the period ended 2012-06-30.
Brightpoint, Inc. has a market cap of $619.79 million; its shares were traded at around $0 with a P/E ratio of 10.08 and P/S ratio of 0.12. Brightpoint, Inc. had an annual average earning growth of 23% over the past 10 years.
The following table presents the percentage changes in revenue for the three and six months ended June 30, 2012 by service line compared to the same periods in the prior year, including the impact to revenue from changes in wireless devices handled, average selling price, non-handset based revenue, foreign currency, and acquisitions.
The increase in wireless devices sold through distribution for the three and six months ended June 30, 2012 was primarily due to an increase in wireless devices sold in our Germany and Southeast Asia operations due to increased demand for smartphones. Wireless devices sold in Germany and Southeast Asia for the six months ended June 30, 2012 increased 63% and 55% compared to the same period in prior year. There can be no assurances we will maintain this level of growth in Germany or Southeast Asia in future periods. Distribution revenue from sales of tablets was $30.3 million and $76.7 million for the three and six months ended June 30, 2012.
The decrease in operating income and operating income as a percentage of revenue for the three and six months ended June 30, 2012 was primarily due to the following factors: a) $5.0 million of contract amendment expense in conjunction with the Merger to eliminate the non-competition covenants applicable to us in the Shareholders Agreement with Intcomex; b) $1.8 million of merger expenses incurred related to the Merger and c) a decrease in both distribution and logistic services gross profit as discussed above. These factors were partially offset by decreases in SG&A expense and restructuring charges.
On April 19, 2011, we completed our investment in the U.S. based company Intcomex, Inc. Under this agreement, we invested $13.0 million, subject to working capital adjustments, and contributed our Colombia and Guatemala operations and certain of our other Latin America operations, excluding certain legacy business in Puerto Rico, for an approximate 23% share of the outstanding common stock of Intcomex. The investment is an equity method investment and our share of earnings (losses) in Intcomex will be recorded below operating income in the consolidated statement of operations three months in arrears in order to meet our reporting deadlines. We recorded a $3.0 million non-cash, non-taxable gain on investment for the difference between the fair value of the investment received in Intcomex and the carrying value of the assets contributed.
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Brightpoint, Inc. has a market cap of $619.79 million; its shares were traded at around $0 with a P/E ratio of 10.08 and P/S ratio of 0.12. Brightpoint, Inc. had an annual average earning growth of 23% over the past 10 years.
Highlight of Business Operations:
Consolidated revenue was $1.3 billion and $2.6 billion for the three and six months ended June 30, 2012, increases of 3% and 12% compared to the same periods in the prior year. The increase in revenue was driven by an increase in wireless devices sold through our distribution business in the Asia-Pacific and EMEA regions due to increased demand for smartphones. This increase is partially offset with unfavorable foreign currency fluctuations and a decrease in wireless devices sold through our North America distribution business as a result of increased competition. Foreign currency fluctuations had an unfavorable impact on revenue of $77.8 million and $105.4 million for the three and six months ended June 30, 2012.The following table presents the percentage changes in revenue for the three and six months ended June 30, 2012 by service line compared to the same periods in the prior year, including the impact to revenue from changes in wireless devices handled, average selling price, non-handset based revenue, foreign currency, and acquisitions.
The increase in wireless devices sold through distribution for the three and six months ended June 30, 2012 was primarily due to an increase in wireless devices sold in our Germany and Southeast Asia operations due to increased demand for smartphones. Wireless devices sold in Germany and Southeast Asia for the six months ended June 30, 2012 increased 63% and 55% compared to the same period in prior year. There can be no assurances we will maintain this level of growth in Germany or Southeast Asia in future periods. Distribution revenue from sales of tablets was $30.3 million and $76.7 million for the three and six months ended June 30, 2012.
The decrease in operating income and operating income as a percentage of revenue for the three and six months ended June 30, 2012 was primarily due to the following factors: a) $5.0 million of contract amendment expense in conjunction with the Merger to eliminate the non-competition covenants applicable to us in the Shareholders Agreement with Intcomex; b) $1.8 million of merger expenses incurred related to the Merger and c) a decrease in both distribution and logistic services gross profit as discussed above. These factors were partially offset by decreases in SG&A expense and restructuring charges.
On April 19, 2011, we completed our investment in the U.S. based company Intcomex, Inc. Under this agreement, we invested $13.0 million, subject to working capital adjustments, and contributed our Colombia and Guatemala operations and certain of our other Latin America operations, excluding certain legacy business in Puerto Rico, for an approximate 23% share of the outstanding common stock of Intcomex. The investment is an equity method investment and our share of earnings (losses) in Intcomex will be recorded below operating income in the consolidated statement of operations three months in arrears in order to meet our reporting deadlines. We recorded a $3.0 million non-cash, non-taxable gain on investment for the difference between the fair value of the investment received in Intcomex and the carrying value of the assets contributed.
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