CARROLLTON, Texas-In its earnings report released after the close of trading February 25, CellStar Corp., a distributor of wireless products, reported improved results for the fiscal year and fourth quarter, both of which ended November 30.
Consolidated net income for fiscal year 2001 was $600,000, or 5 cents per diluted share, compared with the net loss of $63 million, or $5.24 per share, reported during the prior fiscal year. The company also reported a 1.7-percent decline in fiscal 2001 revenues, to $2.43 million from $2.476 million in fiscal 2000.
“We are pleased to report a profit for fiscal 2001 when many in the wireless communications business suffered losses in the face of extraordinary economic and industry challenges. Restoring profitability was the first of three key objectives achieved by CellStar’s management team over the past year,” said Terry Parker, chief executive officer.
The company also has met its other two main goals by improving its balance sheet through tighter control of receivables and inventories and successfully restructuring its finances, he said.
For the fourth quarter of 2001, CellStar reported a net loss of $1.4 million, or 12 cents per share, compared with a net loss of $16.1 million, or $1.34 per share, during the same period of 2000. Revenues were $605.3 million, down from $694.7 million during the fourth quarter of 2000.
The earnings per share reflect the effect of the one-for-five reverse stock split, reported February 22, that reduced the number of outstanding stock shares to 12 million from 60.1 million, the company said.
“Although fourth-quarter sales in the wireless industry did not materialize as expected, we are pleased with the overall improvements in operating performance we have achieved in fiscal 2001,” said Dale Allardyce, president and chief operating officer.
