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PLAINFIELD, Ind., Aug 08, 2007 -- Brightpoint, Inc. (NASDAQ:CELL)
For the Second Quarter of 2007:
-- Record revenue of $851.0 million, an increase of 55% from the
second quarter of 2006.
-- Income from continuing operations of $17.7 million or $0.35
per diluted share compared to $8.2 million or $0.16 per diluted
share in the second quarter of 2006. For the second quarter of
2007, income from continuing operations included:
-- $0.5 million (pre-tax) of incremental costs associated with
integrating the CellStar acquisition.
-- $0.4 million (pre-tax) of incremental costs related to
integration and planning associated with the Dangaard
acquisition.
-- $0.6 million pre-tax charge as a result of a bankruptcy
filing by a customer of our North America operations.
-- $0.7 million pre-tax operating loss from our AWS business.
In June 2007, we developed a plan to reorganize our AWS
business by integrating it into our existing sales channels
and reallocating our resources. We expect to incur a pre-tax
charge during the third quarter of 2007 of approximately
$0.2 million, which will result in anticipated savings of
approximately $2.2 million to $2.5 million annually.
-- $0.3 million of pre-tax operating loss associated with the
repair business in Philippines. In July 2007, we sold
certain assets associated with this business, which will
result in a third quarter charge of $0.3 million to $1.0
million.
-- $1.3 million (pre-tax) of non-cash stock based compensation
expense in the second quarter of 2007 compared to $1.5
million in the second quarter of 2006.
-- $14.1 million tax benefit related to the reversal of
valuation allowances on certain foreign tax credit
carryforwards.
-- Net income of $17.7 million or $0.35 per diluted share compared
to $8.2 million or $0.16 per diluted share in the second
quarter of 2006.
-- Gross margin of 4.9%, a decrease of 1.6 percentage points from
the second quarter of 2006.
-- Shift in mix toward lower margin distribution business from
higher margin logistic services business.
-- Distribution gross margin decreased 1.2 percentage points
from the second quarter of 2006 as a result of lower
availability of certain higher margin products, growth in
volumes in lower margin Asia-Pacific markets, sales of
slower moving wireless devices at minimal margins resulting
from an expanded relationship with a major original
equipment manufacturer and lower margins on converged
devices in Europe.
-- Excluding the effect of the $14.1 million tax benefit
discussed above, effective income tax rate of 36.0% compared
to 27.1% for the second quarter of 2006 primarily due to a
shift in mix of income between jurisdictions and
non-deductible stock based compensation.
-- Record 19.4 million wireless devices handled, an increase of
approximately 47% from the second quarter of 2006.
-- EBITDA of $12.1 million in the second quarter of 2007 as
compared to $14.5 million in the second quarter of 2006.
-- Inventory decreased to $257.8 million at June 30, 2007 from
$391.7 million at December 31, 2006.
-- Slower moving Asia inventory decreased from $146.8 million
at end of the first quarter of 2007 to $50.5 million at the
end of the second quarter of 2007 and $34.4 million as of
July 31, 2007.
"In the second quarter of 2007, we continued to focus on the execution of our growth strategy including the integration of the CellStar business and the planning related to the Dangaard integration," stated Robert J. Laikin, Brightpoint's Chairman of the Board and Chief Executive Officer. "I am excited about Brightpoint's long term opportunities for growth in the global wireless industry. Based on a strong second quarter for the wireless industry, I am raising the lower end of my 2007 sell-in range of 1.1 billion to 1.2 billion units for the global wireless device industry to a revised sell-in range of 1.15 billion to 1.2 billion units. In the second quarter, we handled an all time company record of 19.4 million wireless devices. We feel that with the completion of the Dangaard transaction along with our current positive momentum, we are on pace to grow faster than the wireless device industry and expect to handle between 90 million and 110 million wireless devices in 2008."
"During the second quarter of 2007, we laid the groundwork necessary for the successful completion of both the Dangaard transaction as well as our expanded Global Credit facility," said Tony Boor, Brightpoint's Chief Financial Officer. "We have also made great progress in reducing our aged inventory position in Asia-Pacific and we are now well positioned to return to cash conversion cycle days that are more in line with our historical levels excluding the impact of the Dangaard acquisition."
Brightpoint, Inc. (NASDAQ:CELL) reported its financial results for the second quarter ended June 30, 2007. Unless otherwise noted, amounts pertain to the second quarter of 2007.
SUMMARY FINANCIAL RESULTS
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended
-------------------
June 30,
2007 2006
--------- ---------
Wireless devices handled 19,426 13,247
Revenue $850,995 $549,858
Gross profit $41,583 $35,744
Gross margin 4.9% 6.5%
Selling, general and administrative expenses $33,392 $24,418
Operating income from continuing operations $8,191 $11,326
Income from continuing operations $17,721 $8,212
Net income $17,688 $8,241
Diluted per share:
Income from continuing operations $0.35 $0.16
Net income $0.35 $0.16
Brightpoint experienced a year-over-year increase in wireless devices handled of 47% during the second quarter of 2007 and a year-over-year increase in revenue of 55%. The year-over-year growth in revenue was primarily driven by the acquisition of CellStar as well as growth in our distribution business in Singapore. Wireless devices handled through logistic services were 72% of total wireless devices handled for the second quarter of 2007 compared to 79% in the second quarter of 2006.
For the second quarter of 2007, our Americas, Asia-Pacific and Europe divisions experienced year-over-year growth in devices handled of 41%, 78% and 54%, respectively. The growth in wireless devices handled in our Americas division was driven by our successful launch of the T-Mobile logistics business during the second quarter of 2007 as well as the acquisition of certain CellStar assets and liabilities. Excluding the impact of CellStar, wireless devices handled in our Americas division increased 24%. The increase in wireless devices handled in our Asia-Pacific division was primarily due to increased handset distribution units sold to customers served by our business in Singapore (previously served by our Brightpoint Asia Limited business) as a result of improved product availability at competitive prices as well as new products launched by our suppliers. In addition, we believe we sold more devices to these customers as a result of improved visibility into these channels by serving these customers through our business in Singapore rather than our Brightpoint Asia Limited business. Wireless devices handled in our Asia-Pacific division also increased as a result of an expanded global relationship with a major original equipment manufacturer. The increase in wireless devices handled in our Europe division was primarily due to adding products to our portfolio through the diversification of our supplier base.
Gross margin for the second quarter of 2007 decreased to 4.9% from 6.5% in the second quarter of 2006. The 1.6 percentage point decrease in gross margin was due to a 1.2 percentage point decrease in gross margin from our distribution business as well as a shift in mix in revenue toward lower margin distribution business from higher margin logistic services business. The overall distribution gross margin decreased primarily as a result of distribution gross margin declines in our Europe division. The decrease in distribution gross margin in our Europe division was primarily due to lower gross margins on converged devices. We experienced lower gross margins on converged devices due to increased competition and higher warranty costs on these products. Distribution gross margin was also negatively impacted by a lower distribution gross margin in our Americas and Asia-Pacific divisions. The decrease in distribution gross margin in our Americas division was due to unfavorable product mix compared to the second quarter of 2006. Gross margin in our Asia-Pacific division was negatively impacted by sales of wireless devices procured in connection with our expanded global relationship with a major original equipment manufacturer as a result of selling these products at relatively low margins in an effort to improve sell through of these devices. In addition, our gross margin for the second quarter of 2007 was negatively impacted by a reduced fee structure associated with the modification and extension of a logistic services agreement with a significant customer in our North America business.
SG&A expenses increased $9.0 million or 37% for the three months ended June 30, 2007 compared to the same period in the prior year. As a percent of revenue, SG&A expenses decreased 0.5 percentage points. SG&A expenses associated with the CellStar operations represented $2.5 million of the overall increase. Excluding the impact of the CellStar operations, SG&A expenses increased due to $2.7 million in additional personnel costs primarily in support of overall growth in unit volumes in our Asia-Pacific division, $0.5 million of incremental costs related to integrating the CellStar acquisition, $0.4 million of costs related to the integration and planning associated with the Dangaard acquisition, a $0.6 million charge as a result of bankruptcy filing by a customer of our North America operations and a $1.2 million increase due to fluctuations in foreign currencies.
Operating income from continuing operations decreased 28% to $8.2 million for the second quarter of 2007 compared to $11.3 million for the second quarter of 2006. The decrease in operating income was primarily due to the 1.6 percentage point decrease in gross margin.
Income tax benefit for the second quarter of 2007 was $12.1 million, which included a $14.1 million benefit related to the reversal of valuation allowances on certain foreign tax credit carryforwards. Based on actual and projected taxable income and projected foreign-sourced income, it became more likely than not during the second quarter of 2007 that we will be able to utilize these foreign tax credits prior to their expiration. Excluding the effect of this $14.1 million benefit, income tax expense for the second quarter of 2007 was $2.0 million resulting in an effective tax rate of 36.0% compared to an effective tax rate of 27.1% for the second quarter of 2006. The increase in the effective income tax rate was the result of a shift in mix of income between jurisdictions and non-deductible stock based compensation expenses.
During the second quarter of 2007, the cash conversion cycle increased to 23 days from 11 days compared to the same period in the prior year. The change in the cash conversion cycle was primarily due to the 4-day increase in days inventory on-hand combined with the 6-day decrease in days payable outstanding. The 4-day increase in days inventory on-hand was primarily due to the remaining inventory on hand from significant purchases of wireless devices in September 2006 and December 2006 as part of an expanded global relationship with a major original equipment manufacturer in our Asia-Pacific division. The 6-day decrease in days payable outstanding was also primarily driven by a decrease in payables associated with this slower moving Asia inventory. Sequentially, the cash conversion cycle decreased 1 day from 24 days for the first quarter of 2007. Days inventory on-hand decreased 20 days and days payable outstanding decreased 14 days from the first quarter of 2007. Both of these decreases were driven by slower moving Asia inventory.
On June 29, 2007, AT&T Inc. announced that it will acquire Dobson Communications Corporation (Dobson). Dobson is a significant product distribution and logistic services customer of our North America operations. This acquisition is currently expected to close by the end of 2007 or in early 2008. On July 30, 2007, Verizon Wireless announced that it will acquire Rural Cellular Corporation (RCC). RCC is a distribution customer of our North America operations. This acquisition is expected to be completed in the first half of 2008. These customers are also customers of the operations we acquired from CellStar. Should either or both of these acquisitions be completed, our operating results may be negatively impacted. Brightpoint North America is undertaking significant cost cutting efforts including consolidating the CellStar operations previously performed in the Coppell, Texas facility into our other North America operations. Savings associated with this facility consolidation and other cost cutting efforts are expected to lower our overall spending. While these cost cutting efforts may help mitigate some of the negative impact from AT&T's acquisition of Dobson and Verizon's acquisition of RCC, there can be no assurances that we will be successful in these efforts.
Brightpoint, Inc (NASDAQ:CELL) is a global leader in the distribution of wireless devices and the provision of customized logistic services to the wireless industry. In 2006, Brightpoint (including Dangaard on a pro forma basis) handled 64 million wireless devices globally. Brightpoint's innovative services include distribution, channel development, fulfillment, product customization, eBusiness solutions, and other outsourced services that integrate seamlessly with its customers. Brightpoint's effective and efficient platform allows its customers to benefit from quickly deployed, flexible, and cost effective solutions. The Company has approximately 3,700 employees in 25 countries. Including Dangaard operations on a pro forma basis, unaudited revenue in 2006 was $4.6 billion and unaudited net income was $61 million on a pro forma basis. Additional information about Brightpoint can be found on its website at www.brightpoint.com, or by calling its toll-free Information and Investor Relations line at 877-IIR-CELL (877-447-2355).
Certain statements in this earnings release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Brightpoint, Inc. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risk factors include, without limitation, uncertainties relating to customer plans and commitments, including, without limitation, (i) loss of significant customers or a reduction in prices we charge these customers; Both Dobson Communications Corporation and Rural Cellular Corporation (RCC) have recently announced plans to be acquired. Should either or both of these acquisitions be completed, our operating results may be negatively impacted. (ii) our significant payment obligations under certain debt, lease and other contractual arrangements; (iii) significant future payment obligations for wireless devices; (iv) possible adverse effect on demand for our products resulting from consolidation of mobile operators; (v) dependence upon principal suppliers and availability and price of wireless products; (vi) our ability to borrow additional funds; (vii) possible difficulties collecting our accounts receivable; (viii) our ability to increase volumes and maintain our margins; (ix) our ability to expand and implement our future growth strategy, including acquisitions; (x) uncertainty regarding future volatility in our Common Stock price; (xi) uncertainty whether wireless equipment manufacturers and wireless network operators will continue to outsource aspects of their business to us; (xii) our reliance upon third parties to manufacture products which we distribute and reliance upon their quality control procedures; (xiii) our operations may be materially affected by fluctuations in regional demand and economic factors; (xiv) our ability to respond to rapid technological changes in the wireless communications and data industry; (xv) access to or the cost of increasing amounts of capital, trade credit or other financing; (xvi) risks of foreign operations, including currency, trade restrictions and political risks in our foreign markets; (xvii) effect of natural disasters, epidemics, hostilities or terrorist attacks on our operations; (xviii) investment in sophisticated information systems technologies and our reliance upon the proper functioning of such systems; (xix) possible adverse effects of future medical claims regarding the use of wireless devices; (xx) our ability to meet intense industry competition; (xxi) our ability to manage and sustain future growth at our historical or current rates; (xxii) certain relationships and financings, which may provide us with minimal returns or losses on our investments; (xxiii) the impact that seasonality may have on our business and results; (xxiv) our ability to attract and retain qualified management and other personnel, cost of complying with labor agreements and high rate of personnel turnover; (xxv) our ability to protect our proprietary information; (xxvi) our ability to maintain adequate insurance at a reasonable cost; (xxvii) the potential issuance of additional equity, including our Common Stock, which could result in dilution of existing shareholders and may have an adverse impact on the price of our Common Stock; and (xxviii) existence of anti-takeover measures. Because of the aforementioned uncertainties affecting our future operating results, past performance should not be considered to be a reliable indicator of future performance, and investors should not use historical trends to anticipate future results or trends. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date these statements were made. The words "believe," "expect," "anticipate," "intend," and "plan" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on any of these forward-looking statements, which speak only as of the date that such statement was made. We undertake no obligation to update any forward-looking statement.
BRIGHTPOINT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- ----------------------
2007 2006 2007 2006
------------------- ----------------------
Revenue
Distribution revenue $766,980 $467,014 $1,334,020 $950,486
Logistic services revenue 84,015 82,844 158,604 163,927
------------------- ----------------------
Total revenue 850,995 549,858 1,492,624 1,114,413
Cost of revenue
Cost of distribution
revenue 743,866 447,342 1,294,280 911,242
Cost of logistic services
revenue 65,546 66,772 124,046 131,115
------------------- ----------------------
Total cost of revenue 809,412 514,114 1,418,326 1,042,357
------------------- ----------------------
Gross profit 41,583 35,744 74,298 72,056
Selling, general and
administrative expenses 33,392 24,418 61,725 48,170
Facility consolidation
benefit - - - (9)
------------------- ----------------------
Operating income from
continuing operations 8,191 11,326 12,573 23,895
Interest, net 2,290 120 3,440 197
Other (income) expenses 243 (52) 287 (62)
------------------- ----------------------
Income from continuing
operations before income
taxes 5,658 11,258 8,846 23,760
Income tax (benefit) expense (12,063) 3,046 (10,717) 6,547
------------------- ----------------------
Income from continuing
operations 17,721 8,212 19,563 17,213
Discontinued operations, net
of income taxes:
Loss from discontinued
operations (41) (36) (37) (175)
Gain on disposal of
discontinued operations 8 65 12 71
------------------- ----------------------
Total discontinued
operations, net of income
taxes (33) 29 (25) (104)
------------------- ----------------------
Net income $17,688 $8,241 $19,538 $17,109
=================== ======================
Earnings per share - basic:
Income from continuing
operations $0.36 $0.17 $0.39 $0.35
Discontinued operations,
net of income taxes - - - -
------------------- ----------------------
Net income $0.36 $0.17 $0.39 $0.35
=================== ======================
Earnings per share -
diluted:
Income from continuing
operations $0.35 $0.16 $0.39 $0.34
Discontinued operations,
net of income taxes - - - -
------------------- ----------------------
Net income $0.35 $0.16 $0.39 $0.34
=================== ======================
Weighted average common
shares outstanding:
Basic 49,671 49,023 49,580 48,916
=================== ======================
Diluted 50,739 50,550 50,615 50,640
=================== ======================
BRIGHTPOINT, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
June 30, December 31,
----------- ------------
2007 2006
----------- ------------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $43,756 $54,130
Pledged cash 420 201
Accounts receivable (less allowance for
doubtful accounts of $6,748 in 2007 and
$4,926 in 2006) 303,491 228,186
Inventories 257,777 391,657
Contract financing receivable 10,985 20,161
Contract financing inventory 8,824 7,293
Other current assets 24,053 25,870
----------- ------------
Total current assets 649,306 727,498
Property and equipment, net 42,393 37,904
Goodwill and other intangibles, net 71,963 8,219
Other assets 23,678 4,732
----------- ------------
Total assets $787,340 $778,353
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $340,727 $454,552
Accrued expenses 83,722 68,320
Contract financing payable 25,415 30,991
Lines of credit, short-term 11,139 13,875
----------- ------------
Total current liabilities 461,003 567,738
Long-term liabilities:
Lines of credit 83,930 3,750
Other long-term liabilities 13,616 12,037
----------- ------------
Total long-term liabilities 97,546 15,787
----------- ------------
Total liabilities 558,549 583,525
COMMITMENTS AND CONTINGENCIES
Shareholders' equity:
Preferred stock, $0.01 par value: 1,000
shares authorized; no shares issued or
outstanding - -
Common stock, $0.01 par value: 100,000
shares authorized; 58,043 issued in 2007
and 57,536 issued in 2006 580 575
Additional paid-in-capital 274,887 266,756
Treasury stock, at cost, 6,925 shares in
2007 and 6,891 shares in 2006 (58,650) (58,295)
Retained earnings (deficit) 1,611 (17,918)
Accumulated other comprehensive income 10,363 3,710
----------- ------------
Total shareholders' equity 228,791 194,828
----------- ------------
Total liabilities and shareholders' equity $787,340 $778,353
=========== ============
BRIGHTPOINT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Six Months Ended
June 30,
------------------
2007 2006
------------------
Operating activities
Net income $19,538 $17,109
Adjustments to reconcile net income to net cash used
in operating activities:
Depreciation and amortization 7,244 6,057
Discontinued operations 25 104
Pledged cash requirements (212) (11)
Non-cash compensation 2,872 2,950
Facility consolidation charge benefit - (9)
Change in deferred taxes (13,202) 172
Other non-cash 980 962
------------------
17,245 27,334
Changes in operating assets and liabilities, net of
effects from acquisitions and divestitures:
Accounts receivable (1,896) (3,844)
Inventories 172,792 (10,871)
Other operating assets 100 (4,046)
Accounts payable and accrued expenses (200,108) (20,148)
------------------
Net cash used in operating activities (11,867) (11,575)
Investing activities
Capital expenditures (9,316) (9,645)
Acquisitions, net of cash acquired (68,864) (741)
Net cash provided by contract financing arrangements 2,135 3,822
Increase in other assets (1,916) (38)
------------------
Net cash used in investing activities (77,961) (6,602)
Financing activities
Net proceeds from credit facilities 76,334 -
Deferred financing costs paid (1,758) -
Purchase of treasury stock (355) (18,360)
Excess tax benefit from equity based compensation 513 7,884
Proceeds from common stock issuances under employee
stock option plans 1,884 5,263
------------------
Net cash provided by (used in) financing activities 76,618 (5,213)
Effect of exchange rate changes on cash and cash
equivalents 2,836 (131)
------------------
Net decrease in cash and cash equivalents (10,374) (23,521)
Cash and cash equivalents at beginning of period 54,130 106,053
------------------
Cash and cash equivalents at end of period $43,756 $82,532
==================
Supplemental Information
(Amounts in thousands)
Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA")
Three Months Ended
---------------------------
June 30, June 30, March 31,
2007 2006 2007
-------- -------- ---------
Net income (1) $17,688 $8,241 $1,850
Net interest expense (1) 2,290 120 1,148
Income taxes (1) (12,063) 3,098 1,346
Depreciation and amortization (1) 4,185 3,046 3,059
-------- -------- ---------
EBITDA $12,100 $14,505 $7,403
======== ======== =========
(1) Includes discontinued operations
EBITDA is a non-GAAP financial measure. Management believes EBITDA provides it with an indication of how much cash the Company generates, excluding non-cash charges and any changes in working capital. Management also reviews and utilizes the entire statement of cash flows to evaluate cash flow performance.
Cash Conversion Cycle Days
Management utilizes the cash conversion cycle days metric and its components to evaluate the Company's ability to manage its working capital and its cash flow performance. Cash conversion cycle days and its components for the quarters ending June 30, 2007 and 2006, and March 31, 2007 were as follows:
Three Months Ended
---------------------------
June 30, June 30, March 31,
2007 2006 2007
-------- -------- ---------
Days sales outstanding in accounts
receivable 27 25 22
Days inventory on-hand 30 26 50
Days payable outstanding (34) (40) (48)
-------- -------- ---------
Cash Conversion Cycle Days 23 11 24
======== ======== =========
Return on Invested Capital ("ROIC")
The Company uses ROIC to measure the effectiveness of its use of invested capital to generate profits. ROIC for the quarters and trailing four quarters ended June 30, 2007 and 2006, and March 31, 2007, was as follows:
Three Months Ended
-----------------------------
June 30, June 30, March 31,
2007 2006 2007
--------- --------- ---------
Operating income after taxes:
Operating income from continuing
operations $8,191 $11,326 $4,382
Plus: Facility consolidation charge
(benefit) - - -
Less: estimated income taxes (1) 17,463 (3,064) (1,850)
--------- --------- ---------
Operating income after taxes $25,654 $8,262 $2,532
========= ========= =========
Invested Capital:
Debt $95,069 $- $94,405
Shareholders' equity 228,791 165,123 200,063
--------- --------- ---------
Invested capital $323,860 $165,123 $294,468
========= ========= =========
Average invested capital (2) $309,164 $157,042 $253,460
ROIC (3) 33% 21% 4%
Trailing Four Quarters Ended
-----------------------------
June 30, June 30, March 31,
2007 2006 2007
--------- --------- ---------
Operating income after taxes:
Operating income from continuing
operations $37,049 $51,400 $40,184
Plus: Facility consolidation charge
(benefit) - (279) -
Less: estimated income taxes (1) 9,940 (13,185) (10,587)
--------- --------- ---------
Operating income after taxes $46,989 $37,936 $29,597
========= ========= =========
Invested Capital:
Debt $95,069 $- $94,405
Shareholders' equity 228,791 165,123 200,063
--------- --------- ---------
Invested capital $323,860 $165,123 $294,468
========= ========= =========
Average invested capital (2) $234,545 $151,741 $199,565
ROIC (3) 20% 25% 15%
(1) Estimated income taxes were calculated by multiplying the sum of operating income from continuing operations and the facility consolidation charge by the respective periods' effective tax rate.
(2) Average invested capital for quarterly periods represents the simple average of the beginning and ending invested capital amounts for the respective quarter. Average invested capital for the trailing four quarters represents the simple average of the invested capital amounts for the current and four prior quarter period ends.
(3) ROIC is calculated by dividing operating income after taxes by average invested capital. ROIC for quarterly periods is stated on an annualized basis and is calculated by dividing operating income after taxes by average invested capital and multiplying the results by four (4).
ROIC was positively impacted for the three months and trailing four quarters ended June 30, 2007 compared to the same periods in the prior year by the $14.1 million tax benefit related to the reversal of valuation allowances on certain foreign tax credit carryforwards discussed above. Invested capital was negatively impacted for the three months and trailing four quarters ended June 30, 2007 by an increase in invested capital to fund the acquisition of CellStar as well as an increase in invested capital for wireless devices procured in connection with our expanded global relationship with a major original equipment manufacturer.
SOURCE: Brightpoint, Inc.
Brightpoint, Inc.
Anthony Boor, 317-707-2355