4/27/2012 3:03:47 PM
Competition and economic challenges hit Brightpoint profits
Distributor Brightpoint has blamed 'competitive and economic pressures' in Europe, the Middle East and Africa for profit slumping 71% to $2.64m.
In its results for the three months to 31 March, sales also fell from $1.37bn to $1.11bn. Brightpoint said the business had been affected by a decline in gross profits in its logistics division. It was hit by a decrease in repairs and a drop in sales in Norway.
Brightpoint CEO Robert J Laikin said: 'We are reporting solid results in revenue and units handled for the first quarter of 2012. However, our customers and vendor partners faced significant competitive and economic pressures in the first quarter which negatively impacted our profitability. But, I believe that the environment is improving, and we remain well-positioned for future success. I expect the overall wireless device industry to be flat to up to approximately 5% in 2012 as compared to 2011.'
Editor: Graeme Neill