CellStar Fiscal Q1 Sales Rise 9.4%

CARROLLTON, TEXAS — Global provider of distribution and value-added logistics services to the wireless communications industry CellStar reported revenue for the fiscal first quarter climbed 9.4 percent to $645.2 million, compared with $589.9 million in the year-ago first quarter.

CellStar — which facilitates distribution of handsets, related accessories and other wireless products from manufacturers to network operators, retailers and resellers — said net income for the first quarter ended Feb. 28 dropped dramatically to $4.2 million, down from $9.4 million in the first quarter last year. However, the quarter's income compares favorably to a net loss of $15.9 million in the fourth quarter of the previous fiscal year.

Revenue for the first quarter from sales of handsets jumped 17.7 percent to $583.4 million, compared with $495.5 million in the first quarter a year ago. The company sold 3.3 million handsets in the first quarter, compared with 2.2 million in the year-ago three months.

The average selling price for handsets in the first quarter was $177.83, compared with an average selling price of $167.78 in the preceding quarter. The average selling price of digital handsets dropped to $192.91, down from $196.45 in the preceding quarter. Analog handset average selling price increased to $88.95, up from $81.15 in the preceding quarter, a result of the conversion of low-end analog units for a major customer to consignment, the company said.

Revenue in North America, which continued to benefit from strong promotional activity by several customers as well as from the addition of new customers and expanded markets, climbed 89.2 percent to $146.5 million in the first quarter, up from $77.5 million in the prior-year period. These revenues accounted for 23 percent of total company revenue for the first quarter, up from 13 percent of the total in the year-ago first quarter.