COPPELL, Texas—Shares of CellStar Corp. jumped after the company reported a profitable quarter and unveiled a distribution agreement with LG Electronics Co. Ltd.
The wireless distributor reported a net income of $2.7 million during the quarter, a dramatic turnaround from its loss of $9.4 million during the year-ago period. Second-quarter income from continuing operations was $2.1 million, also up from the $1.8 million loss in 2005. CellStar reported consolidated revenues of $216.8 million during the recent quarter.
In conjunction with its earnings report, the company announced it expanded its relationship with LG, agreeing to ship the manufacturer’s handsets and other products to its network of retailers, carriers and mobile virtual network operators.
“LG’s exciting product lineup provides us with a variety of offerings at various price points for our customers,” said Robert Kaiser, CellStar’s chief executive officer. “Our Sprint MVNO channel has a strong preference for LG product as a result of their low- to medium-priced models.”
The LG news comes one day after CellStar announced a deal to distribute Nokia Corp. accessories
Shares of CellStar bounced 27 cents, or about 10 percent, to $3.04 per share following the announcements.
