CARROLLTON, Texas-CellStar Corp. said it plans to reposition itself to be more focused on
wireless carriers and manufacturers, targeting improved sales and profitability growth.
The strategic initiatives the
company plans to implement include de-emphasizing or eliminating businesses and writing off related assets that do
not support its growth strategy; selling its reseller operations, retail operations in the United States and other operations
that are not essential to its core business; intensifying its focus on cost-control; and continuing to invest in operations
that strengthen its direct relationships with wireless carriers and manufacturers.
CellStar said it believes these
initiatives should generate consistently improved results beginning this year.
The company also released its earnings
report for the fourth quarter ended Nov. 30, which included revenues of $641.7 million and a net loss of $18.9 million,
or 32 cents per share. The net loss included two special charges of $27.7 million, or 32 cents per share. Without the
charges, CellStar would have reported a net income of $9.8 million, or 16 cents per share.
