Yesterday, after market close, Brightpoint Inc (CELL) declared solid financial results for the first quarter of 2010. Both the top-line and bottom-line easily exceeds the Zacks Consensus Estimate supported by excellent performance from newly entered distribution deals as well as effective debt and expenses management strategy initiated in 2009. As a result, in the aftermarket trade at NASDAQ, stock price of Brightpoint was up 42 cents (5.47%) to $8.10.
Quarterly GAAP net income from continuing operations was $4.7 million or 7 cents per share compared to a net loss of $2.1 million or a loss of 3 cents per share in the prior-year quarter. Adjusted (excluding special items) EPS in the first quarter was 13 cents, significantly above the Zacks Consensus Estimate of 6 cents.
Quarterly total revenue of $795.3 billion was up 15% year-over-year. This was also better than the Zacks Consensus Estimate of $789 million. In the first quarter 2010, segment wise, Distribution revenue was $714.4 million, up 18.7% year-over-year. Logistic Services revenue was $80.9 million, down 6.8% year-over-year.
Quarterly gross margin was 9.1% compared to 8.6% in the year-ago quarter. This reflects the aggressive cost cutting measures taken by management during the past one year. Quarterly EBITDA was $17 million compared to just $6.7 million in the year-ago quarter. During the first quarter 2010, Brightpoint manages 22.5 million wireless devices, up 21% year-over-year.
Brightpoint used $23.2 million cash for operations during the first quarter 2010 compared to a cash generation of $35.8 million in the year-ago quarter. Quarterly free cash flow (cash flow from operation less capital expenditure) was a negative ($27.6) million compared to $31.5 million in the prior-year quarter.
At the end of the first quarter 2010, Brightpoint had $24.1 million of cash & marketable securities on its balance sheet compared to $81.1 million at the end of fiscal 2009. Total debt was $124.5 million at the end of the same quarter compared to $97 million at the end of fiscal 2009.
Future Business/Financial Outlook
Brightpoint is expecting that total wireless devices handheld by the company for full year 2010 will be within the range of 101 million – 103 million. Out of this 77-80% of handhelds will be managed through logistic services. Gross margin for full fiscal 2010 will be within the range of 8.6%-8.8%.
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