CARROLLTON, Texas-Wireless product distributor CellStar Corp.’s third-quarter 2003 financial results, released this week, reflected improvement from the previous quarter.
The company said its net income was $1.4 million, or 7 cents per diluted share, a vast improvement from a net loss of $8.1 million, or 40 cents per share, during the second quarter. Net revenues were $442.4 million, up from last quarter’s $436.1 million, but down from $509.2 million in the year-ago third quarter, which the company attributed to declining sales in China during the early part of the third quarter as a result of the SARS outbreak.
Operating income in the United States was $3.8 million, and U.S. revenues were up 14.3 percent compared with the previous quarter. Operating income in Asia was $1 million, with revenues in China up 3.1 percent over the second quarter. And operating income in Latin America was $500,000, with revenues in Mexico up 34.3 percent from the previous quarter.
“After reporting consolidated net losses for the last three quarters, we are pleased to report a profitable third quarter,” said Terry Parker, chief executive officer. “Asia was profitable once again, even though our operations in China did not begin to return to normal operating levels until the middle of the third quarter.”
However, Parker added, handset shipments in China have increased significantly during the past few months, and August and September saw more handset shipments than any other month this year.
