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EXHIBIT 99.1
BRIGHTPOINT UPDATES REVENUE AND EARNINGS ESTIMATES
INDIANAPOLIS--December 20, 2000--Brightpoint, Inc. (NASDAQ:CELL)
announced today that revenue and earnings for the quarter ending December 31,
2000, would be below the expectations disclosed in the Company's October 26,
2000, conference call. The Company expects revenues for the fourth quarter to be
in a range from $500 million to $525 million, and diluted earnings per share to
be in a range from $0.12 to $0.15. For the year ending December 31, 2000, the
Company expects revenues to range from $1.94 billion to $1.96 billion, and
diluted earnings per share to range from $0.61 to $0.64. These diluted earnings
per share expectations for the quarter and year ending December 31, 2000,
exclude i) revisions to prior estimates of nonrecurring and other unusual
charges (which are not expected to be material) and ii) an extraordinary gain on
the early extinguishment of debt (expected to be approximately $10 million after
applicable taxes). Actual results for the fourth quarter and year ending
December 31, 2000, will be reported on January 25, 2000.
"As has recently been announced by many other wireless and technology
companies, demand during the 2000 holiday season in the United States was well
below what we had expected, and slower seasonally than we have seen in the
past," stated Robert J. Laikin, Chairman and Chief Executive Officer of
Brightpoint, Inc. "We believe this is due, at least in part, to economic
uncertainties in the U.S. market causing lower than anticipated demand. We also
believe that our results were dampened by price reductions made by certain
manufacturers designed to counteract this slowness in the U.S. market."
"We are very pleased that all of our divisions outside of the U.S.
appear to be performing at or above expected levels," stated Laikin. "Despite
the lower-than-anticipated demand in the wireless and technology industries in
the U.S., we believe the level of profitability we expect to attain in the
fourth quarter will continue to validate the strategies and business models that
we have implemented."
The Company believes that the demand characteristics in the U.S. market
impacting the fourth quarter of 2000 will likely impact results in the first
half of 2001 as well. The Company expects revenues for the first quarter of 2001
to range from $480 million to $520 million and diluted earnings per share to
range from $0.10 to $0.12. In light of these expectations for the first quarter,
the Company expects the full year revenues for 2001 to be in the range of $2.2
billion to $2.4 billion and diluted earnings per share to range from $0.72 to
$0.80.
"While the economic uncertainty and other factors in the U.S. will
impact our results in the near term, we continue to believe that our value
proposition and business model will allow us to generate long-term, sustainable
growth in earnings," stated Laikin. "And our recent acquisition of APT in
Australia is indicative of our commitment to continue to bring our innovative
and value-additive logistics services to the industry as the convergence of
voice, data and Internet products hastens."
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The Company will conduct a conference call to discuss the revised
expectations on December 21, 2000, at 8:30 a.m. EST (New York time). The
conference call can be accessed through the Investors section of the Company's
website at www.brightpoint.com. To join the conference call telephonically, use
the following information and dial in several minutes prior to the start of the
call:
U.S. toll-free dial-in number (800) 967-7134
International dial-in number (719) 457-2625
No passcode is necessary
The conference call will be archived on the Company's website for
thirty (30) days.
Brightpoint, Inc. is a leading provider of outsourced services in the
global wireless telecommunications and data industry. Brightpoint's innovative
services include contract manufacturing, customized packaging, prepaid and
e-commerce solutions, inventory management, distribution and other outsourced
services. Brightpoint's customers include leading network operators, e-tailers,
retailers and wireless equipment manufacturers. Additional information about
Brightpoint can be found on its website at www.brightpoint.com or by calling its
toll-free Investor Relations Information line at 877-IIR-CELL (877-447-2355).
Certain information in this press release may contain forward-looking
statements regarding future events or the future performance of Brightpoint.
These statements are only predictions and actual events or results may differ
materially. Please refer to the documents the Company files, from time to time,
with the Securities and Exchange Commission; specifically, Brightpoint's most
recent Form 10-K, Form 10-Q and Exhibits 99, thereto. These documents contain
and identify important risk factors that could cause the actual results to
differ materially from those contained in or implied by these forward-looking
statements. These risk factors include, without limitation, economic conditions
in the United States; market demand for wireless handsets, data products and
accessories; consolidation of the Company's wireless network operator customers;
changes in the tendency of wireless equipment manufacturers and network
operators to outsource aspects of their business to the Company; the Company's
ability to obtain competitive products at reasonable prices when needed;
potential product obsolescence or inventory valuation losses; potential
oversupply or shortages of products; changes in social, political, regulatory
and economic conditions or laws in foreign countries where the Company has
operations; changes in foreign currency exchange rates; and financial risk
management. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date these statements
were made. Brightpoint undertakes no obligation to update any forward-looking
statements contained in this press release.
Contact:
Brightpoint, Inc., Indianapolis, Indiana
Phillip A. Bounsall, 317/297-6100
