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CellStar Fis. Q4 Revenue Drops 13%

2/26/2002 10:58:00 AM Eastern

Carrollton, Texas - Wireless handset and accessories distributor CellStar reported a 13 percent drop in revenue for its fiscal fourth quarter, slipping to $605.3 million, down from $694.7 million in the year-ago quarter.

The company did reduce its net loss to $1.4 million in the fourth quarter, compared with a net loss of $16.1 million year over year.

Revenue in the fourth quarter, ended Nov. 30, from the sales of handsets was $534.6 million, compared with $625 million in the fourth quarter of 2000. CellStar handled 5 million handsets in the fourth quarter, compared with 4.2 million in the same three months the previous year.

Revenue in the fourth quarter from the sales of accessories increased to $42.4 million, up from $40.6 million in the same period in 2000.

Revenue in North America climbed 5.1 percent in the fourth quarter, reaching $171.5 million, or 29 percent of CellStar's business, up from 23 percent in the same quarter in 2000. Revenue in North America for the year rose 15.9 percent, reaching $578.6 million, or 24 percent of the company's business, compared with 21 percent year over year.

The average selling price of handsets in the fourth quarter was $141.17, down from $147.39 in the preceding quarter. The average selling price of digital handsets in the fourth quarter was $150.02, compared with $149.42 in the preceding quarter.

Gross margin in the fourth quarter improved 60 basis points, to 5.9 percent, compared with 5.3 percent in the fourth quarter of 2000. The company reduced its Selling, General and Administrative (SG&A) expense by 110 basis points in the fourth quarter, down to 5.4 percent, from 6.5 percent year over year.

Revenue for fiscal 2001 decreased 1.7 percent, to $2.43 billion, from $2.48 billion in the same period a year earlier.

The company, however, registered a profit for the fiscal year, reaching $550,000 in net income, compared with a net loss of $63 million in the same 12 months the previous year.

Gross margin for the year climbed 110 basis points to 5.6 percent, while CellStar reduced its 12-month SG&A expense 210 basis points, to 4.7 percent.

CellStar handled 17.7 million handsets during its fiscal year, compared with 12.6 million for the previous full year.

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