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Technology Stocks : Brightpoint - CELL -- Ignore unavailable to you. Want to Upgrade?

To: Ken W who wrote (1601)	4/30/1999 9:24:00 AM
From: Neil H	Read Replies (1) \| Respond to of 1999

Brightpoint (CELL) Brightpoint's outlook is looking dim. After the bell Thursday, the company reported a loss of two cents a share for the first quarter, compared to a profit of 16 cents a year ago. The distributor of cellular phones and services said revenue rose 9% from a year ago to $372.7 million -- substantially lower growth than the Street expected. Last month, the company warned that revenue would fall between $375 million and $400 million and earnings would be break-even, far below forecasts. Subsequently, analysts cut the earnings forecast to zero. To make matters worse, Brightpoint said it expects disappointing earnings for the rest of the year. Analysts did not foresee such a negative surprise. Rob Damron of Cleary Gull Reiland & McDevitt said earlier Thursday that he thought Brightpoint might report a profit of a penny or two a share. While Damron said analysts were concerned with the company's future earnings potential, he predicted sequential earnings growth in the future and a rebound by the fourth quarter. The analyst said Brightpoint, which distributes Nokia and Ericsson phones, has suffered from inadequate supply of phones in Asia. Given that the demand for Nokia phones exceeded supply in the quarter, Brightpoint missed out on revenue opportunity, the analyst explained. In addition, economic turmoil and currency devaluation in Brazil have cut into profits. Finally, Brightpoint is changing its distribution practices in Europe. It is now fulfilling orders from wireless phone companies, instead of simply buying phones in bulk and hoping to sell them later. While the transition will ultimately generate more profit, Damron said it has hurt earnings this quarter. RT

To: Ken W who wrote (1601)	4/30/1999 10:01:00 AM
From: Grabs	Read Replies (1) \| Respond to of 1999

Ken- The Airtouch deal is nice, yes, but if the company cannot execute on a worldwide basis, then I get concerned. CELL appears to be being whitewashed by smaller independent shops around the world. However, for as long as I remember, the "story" on cell has been its international opportunities. If the company can grow its US presence then great. But with operations in probably over 50 countries, I am concerned that it may get spread too thin. Having said that though, I believe that CELL's brightest days remain ahead and I'm holding onto my shares. I may even pick up some more if this sells off down to 5. Grabs