Brightpoint rolls in solid quarter

Handset distributor Brightpoint Inc. reported increases in both revenues and net income for the fourth quarter and full year 2006, news that helped give a slight boost to the company’s stock.
Brightpoint reported a 7-percent increase in revenues to $677.2 million for the quarter, up from $630.6 million for the same period last year. Revenues for the year were $2.4 billion, up 13 percent from $2.1 billion during 2005. The company’s fourth-quarter revenue figures beat average analyst estimates of $670.32 million, while full-year revenue was in line with average estimates.
The company’s stock was up around 2 percent on the news to $11.32 per share.
Brightpoint logged net income of $9.7 million, up from $8.9 million during last year’s fourth quarter. Net income for the full year was $35.6 million, up significantly from $10.4 million in 2005.
The company said it handled 15.1 million wireless devices during the quarter, 6-percent more than it handled in the fourth quarter of 2005. Brightpoint touched 53.5 million devices for the year, a 27-percent increase from 2005.
“Our fourth quarter revenue of $677 million and over 15 million wireless devices handled were all-time quarterly records,” stated Robert Laikin, Brightpoint’s chairman and CEO. “The global demand for wireless devices continued to be healthy as reflected in Q4 with a sell-in estimate of over 280 million units.”
The company said it experienced the highest year-over-year growth in devices handled in Europe, followed by Asia-Pacific and the Americas.
Ittai Kidron, an analyst with CIBC World Markets, described Brightpoint’s results as “solid,” and said the company could get significant boosts from its recent deals with Motorola Inc. and T-Mobile USA Inc.
“At the current share price we see more upside than downside risk, but wait for more clarity on the timing and margin implications of the new business ramps,” Kidron wrote in a note to investors. CIBC makes a market in Brightpoint securities.