Brightpoint Updates Revenue and Earnings Estimates.Business Editors INDIANAPOLIS--(BUSINESS WIRE)--April 1, 2002 Brightpoint, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CELL) -- Net loss per diluted share for the first quarter of 2002 estimated to range from $0.23 to $0.25, before adoption of new accounting standard for goodwill and other intangible assets -- Net loss per diluted share for the first quarter of 2002 estimated to range from $0.05 to $0.07, after the adoption of the new accounting standard -- Net loss per diluted share from recurring operations for the first quarter of 2002 estimated to range from $0.04 to $0.06 -- Overall financial position at March 31, 2002 expected to be consistent with December 31, 2001 Brightpoint, Inc. (NASDAQ:CELL) announced today that earnings for the quarter ended March 31, 2002, would be below the expectations disclosed in the Company's January 31, 2002 conference call. For the first quarter of 2002, the Company expects to report a net loss per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share from operations (including non-recurring operations and charges) in a range from $0.23 to $0.25. Included in the estimated non-recurring charges are $10 million ($0.18 per share) of non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. related to the sale of 50% of Brightpoint China Limited (pursuant to the formation of the joint venture with Chinatron Group Holdings Limited) and the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of goodwill for the Company's China operations. The Company has not completed the analyses required to adopt Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. " (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 142). However, the Company expects that, upon completion of the required analyses and adoption of SFAS No. 142 in the second quarter of 2002, it will reclassify Verb 1. reclassify - classify anew, change the previous classification; "The zoologists had to reclassify the mollusks after they found new species" class, classify, sort out, assort, sort, separate - arrange or order by classes or categories; "How would you this $10 million charge to the cumulative effect accounting change adjustment. The adoption of SFAS No. 142 is required by June 30, 2002, with an effective date of January 1, 2002. After this reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. is made in the second quarter of 2002, the Company expects that the net loss per diluted share for the first quarter of 2002 will be in a range of $0.05 to $0.07. The Company expects to report a net loss per diluted share from recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. operations (excluding non-recurring operations and charges) in a range from $0.04 to $0.06 (previously estimated to be net income per share ranging from $0.00 to $0.02) on revenues in a range from $325 million to $330 million (previously estimated to be approximately $350 million). Demand for the Company's products and services was below that previously expected by the Company for the first quarter. The Company believes that the lower demand was due, in part, to slower growth in new wireless subscribers and lower demand for replacement handsets as subscribers wait for new generation handsets anticipated by the Company to be released later this year. The Company also believes that the lower-than-anticipated demand and pricing pressures resulted in lower-than-anticipated gross margins during the first quarter of 2002. Although the results of operations for the first quarter of 2002 are expected to be below the Company's January 31, 2002 estimates, the Company expects to report that its overall financial position, including liquidity, was consistent with that reported for December 31, 2001. The Company anticipates that it will announce actual results and further details on May 2, 2002, as previously scheduled. Brightpoint is one of the world's largest distributors of mobile phones. Brightpoint supports the global wireless telecommunications and data industry, providing quickly deployed, flexible and cost effective third party solutions. Brightpoint's innovative services include distribution, channel management, fulfillment, eBusiness solutions and other outsourced services that integrate seamlessly with its customers. Additional information about Brightpoint can be found on its website at www.brightpoint.com or by calling its toll-free Investor Relations Investor relations The process by which the corporation communicates with its investors. Information line at 877-IIR-CELL (877-447-2355). Certain information in this press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding future events or the future performance of Brightpoint. These statements are only predictions and actual events or results may differ materially. Please refer to the documents the Company files, from time to time, with the Securities and Exchange Commission; specifically, Brightpoint's most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Exhibit 99, thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. . These documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in or implied by these forward-looking statements. These risk factors include, without limitation, changes in estimates and judgments inherent in the preparation of the final financial statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date these statements were made. Brightpoint undertakes no obligation to update any forward-looking statements contained in this press release. |
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