Competitive and economic pressures on vendor partners and customers blamed for steep profit drop, despite increase in revenues
US-based distributor BrightPoint saw net income fall 71 per cent to £1.63 million ($2.64 million) in the first quarter of 2012, down from £5.7 million ($9.2 million) in the same quarter a year ago.
The drop came despite a 23 per cent year-on-year increase in revenues to $1.37 billion during the quarter.
Compared to the fourth quarter of 2011, revenues were down 12 per cent and profits were down 82 per cent.
The firm said that its logistics division handled fewer devices in EMEA in Q1 compared to the preceding quarter.
BrightPoint CEO and chairman Robert Laikin (pictured) 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 approximately 5% in 2012 as compared to 2011.”
BrightPoint executive vice president, chief financial officer and treasurer Vince Donargo said: “Our operating results for the first quarter of 2012 reflect some positive trends, however internal and external factors caused certain key operating metrics to be disappointing.”