CARROLLTON, Texas-Cellstar Corp. reported that, based on preliminary estimates by management, revenues and net income for the second quarter will be significantly lower than analyst estimates and the company will show a loss for the quarter.
Analyst estimates for second-quarter net income for Cellstar ranged from 14 cents to 17 cents per diluted share.
Cellstar noted that revenues and earnings were affected by a reduction in sales in Europe and a write-off resulting from a series of third-party theft and fraud losses; lower margins and higher credit risks of its North American operations; decreasing revenue of its Brazilian operations; and new model delays due to digital handset shortages.
This latest financial shortfall comes on the heels of the company’s fourth-quarter 1999 reported revenue, which also was lower than analyst expectations.
