Brightpoint Reports First Quarter Financial Results - Company Financial Information

Cambridge Telcom Report, May 1, 2000

Brightpoint, Inc. (NASDAQ:CELL) reported its financial results for the quarter ended March 31, 2000. Recurring operations in the first quarter of 2000 generated net income per share of $0.17 on revenue of $471 million, both of which are substantial increases from the first quarter of 1999, in which the Company's recurring operations generated net income per share of $0.03 on revenue of $305 million.

Basis of Presentation. Because of the significance of the restructuring plan announced by the Company on June 30, 1999 (the "Plan"), results of operations have been delineated between results from recurring operations and results from non-recurring operations. In addition, the impacts of non-recurring charges have been shown separately. Recurring operations include all operations except those that have been eliminated or terminated in accordance with the Plan. Recurring operations also exclude the impacts of the non-recurring charges related to our facility consolidation in 2000 and the cumulative effect of a change in accounting principle recorded in the first quarter of 1999. The attached consolidated statements of operations include all operations and the charges discussed herein. As previously reported, the Company's execution of the Plan has been substantially completed.

RECURRING OPERATIONS
 (U.S. Dollars, in thousands except per share data)
                                  Quarter Ended March 31
                                  ----------------------
                                      1999       2000      Change
                                  --------------------------------

Revenue                           $ 305,091  $ 470,532       54%
Cost of revenue                     278,662    429,098       54%
                                   -------------------
Gross profit                         26,429     41,434       57%

Selling, general and
 administrative expenses             21,227     23,424       10%
                                   -------------------
Operating income                      5,202     18,010      246%

Interest expense                      2,963      3,287       11%
                                   -------------------
Income before income
  taxes and minority interest     2,239     14,723      558%
Income taxes                            761      5,295      596%
                                   -------------------
Income before minority interest       1,478      9,428      538%
Minority interest                        --         36       --
                                   -------------------
Net income                         $  1,478   $  9,392      535%
                                   -------------------
                                   -------------------
Net income per share (diluted)     $   0.03   $   0.17      467%
                                   -------------------
                                   -------------------
Weighted average shares
 outstanding (diluted)               54,252     63,493
                                   -------------------
                                   -------------------

Revenue. Revenue from recurring operations in the quarter ended March 31, 2000 increased 54% compared to revenue generated by the same operations in the first quarter of 1999. The demand for handsets continued to be very strong due, in part, to unfilled orders from the end of the fourth quarter of 1999. Units handled increased by 41% in the first quarter of 2000 compared to the same period a year ago.

Revenue growth in the North America division was 2%, when comparing the first quarter of 2000 to the same period in 1999, and units handled by this division grew by 34% compared to the first quarter of 1999, resulting primarily from the continued execution of the Company's strategy of focusing on integrated logistics services, which generated lower revenue dollars per handset, but contributed much higher gross and operating margins.

Revenue growth was especially strong in the Asia-Pacific division, demonstrating the successful implementation of the Plan. Revenue was suppressed in the first quarter of 1999 due to the previously reported inadequate supply of product caused, in part, by our former joint operations in China, which were terminated as part of the Plan. The Company's new joint operations in China have generated substantially higher levels of revenue.

Revenue growth in the Europe, Middle East and Africa and Latin America divisions was also strong and is indicative of the demand for wireless handsets and accessories in those markets, as well as the execution of our strategies designed for those markets.

Revenue From Recurring Operations By Division
 (U.S. Dollars, in thousands)
                          Quarter Ended March 31
                ------------------------------------------
                             Percent              Percent
                   1999     of Total     2000    of Total   Change
                --------------------------------------------------

North America    $157,019      51%     $160,817     34%       2%

Asia-Pacific       53,968      18%      135,240     29%     151%

Europe, Middle East
 and Africa        52,140      17%       99,290     21%      90%

Latin America      41,964      14%       75,185     16%      79%
                ------------------------------------------

Total            $305,091     100%     $470,532    100%      54%
                ------------------------------------------
                ------------------------------------------

Revenue From Recurring Operations By Service Line
  (U.S. Dollars, in thousands)
                      Quarter Ended March 31
                ------------------------------------------
                            Percent              Percent
                   1999     of Total     2000    of Total   Change
                --------------------------------------------------

Sales of
wireless handsets$229,448      75%     $361,213     77%      57%

Sales of
wireless accessories49,561     16%       60,971     13%      23%

Integrated logistics
 services          26,082       9%       48,348     10%      85%
                ------------------------------------------
Total            $305,091     100%     $470,532    100%      54%
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