CARROLLTON, Texas-Handset distribution company CellStar Corp. posted a loss in its third quarter, but promised to resurrect its business in the coming months. Investors appeared disheartened with the situation, sending the company’s shares down 33 percent to $1.19 per share.
CellStar recorded a net loss of $7.6 million in the quarter. In the same quarter a year ago, the company reported a net loss of $14.2 million. The company’s revenues for the quarter clocked in at $277.9 million, up from revenue of $201.2 million in same quarter a year ago. CellStar said its Latin American business continues to do well.
“We are pleased with our results so far this year in Latin America. The 65-percent growth in revenues is proof that the strategy we adopted last year is working,” said Robert Kaiser, CellStar’s chairman and chief executive officer. “Although our U.S. business is profitable, it is not where we want it to be. Our reporting delays and issues in the Asia-Pacific Region have significantly impacted the region and our ability to generate new business. In the next several months, we will be very focused on improving the results in the region, much as we did in Latin America not too long ago.”
