CARROLLTON, Texas-CellStar Corp., a supplier of value-added logistics services for the wireless industry, expects to report a net loss of between $12 million and $14 million, or 20 cents to 23 cents per diluted share, for the third quarter, compared with analysts predictions of net income of 7 cents per diluted share.
CellStar reported net income of $15 million, or 25 cents per diluted share, for the third quarter last year.
The company said the negative financial results were due to its commitment to defend market share in the face of global industry price competition, driven in part by a surplus of wireless handsets; the economic slowdown and political uncertainty in parts of Latin America; and the company’s previously announced plans to reduce the levels and improve the quality of its inventories.
CellStar said it was cautiously optimistic that the imbalance in handset supply and demand will improve during the fourth quarter, resulting in the stabilization of handset prices.
CellStar’s stock was down almost 15 percent in morning trading, losing 47 cents to $2.69 per share.
