) posted mixed financial results for the second quarter of 2012.
The company has slowly started gaining new orders, which may
partially offset the loss of a major client of the company's
high-margin Logistics segment in the U.S. However, broader
worldwide macro-economic volatility remains as a major near-term
concern. In the second quarter of 2012, gross margin, operating
margin, and net margin dropped 1.3%, 0.8%, and 0.4% year over year,
On July 2, 2012, Brightpoint Inc. has entered into a definitive
Ingram Micro Inc.
) through which Ingram Micro will acquire all of the outstanding
shares of Brightpoint common stock for $9 per share in cash. The
transaction is valued at approximately $840 million, including the
value of around $190 million of Brightpoint's net debt as of June
30, 2012. However, the acquisition is subjected to certain terms
and conditions and is expected to be completed before the end of
Management has revised its financial outlook downward twice for
fiscal 2012 in the last eight months due to a major client loss and
macro-economic fluctuations. The market has become intensely
competitive. Recent consolidation trend among wireless operators
may also become a long-term negative for the company. We believe
Brightpoint is currently fairly valued and, thus, reaffirm our
Nevertheless, the impetus for continued financial improvement
remains Brightpoint's diversity, as the company provides a full
range of sales & distribution, logistics, and activation
services while expanding on a global basis. The company enhanced
its portfolio of product offerings for customers, while developing
new sales channels for its suppliers.
BRIGHTPOINT INC (CELL): Free Stock Analysis
INGRAM MICRO (IM): Free Stock Analysis Report
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