Coppell, Texas—CellStar Corp., a wireless handset and accessory distributor, announced it made a profit of $2.2 million for the first quarter, ending Feb. 28, compared to a loss of $4.4 million in the year-ago quarter.
A quarter-over-quarter revenue increase of $22.6 million in the struggling company’s North American market was overshadowed by a decline in Latin American revenues of $44.1 million in the same comparative period. Revenues for the first quarter of 2006 in North America totaled $122.7 million; in Latin America revenues clocked in at $82.9 million.
CellStar announced earlier this month that it had secured an extension on its loan agreement with Wells Fargo for three years on an $85 million line of credit.
In late March, CellStar announced that it had lost a portion of its business with Lock/line L.L.C., its largest customer in North America. Lock/line merged with Asurion on the first day of 2006, and the latter company then informed CellStar that it would take a portion of its insurance-related handset business in-house.
