Zacks_Analysts' Blog : Brightpoint Collaborates with MSI - Analyst Blog

Brightpoint Netherlands B.V., the Dutch arm of Brightpoint Inc. (CELL) recently entered into a partnership with Symbol Technologies, a subsidiary of Motorola Solutions Inc. (MSI) to ship Motorola Solutions' ES400 Enterprise Digital Assistant (EDA) and related devices in Belgium, Netherlands and Luxembourg.

The popular ES400 developed by Motorola Solutions improves productivity; IT manageability; security; and durability of the organization. It is a combination of both laptop and smartphone. It operates on the Windows Mobile 6.5 platform and supports 1D and 2D barcodes scanning with its 3.2 MP camera.

Brightpointis a leader in global distribution of wireless devices and the provision of customized logistic services to wireless equipment manufacturers and carriers. It serves a wide range of industrial customers such as mobile network operators, mobile virtual network operators (MVNO), resellers, retailers and wireless equipment manufacturers.

Motorola Solutions,which came into existence after the spin-off from its parent company Motorola Inc. on January 4, 2011, develops and offer services to both analog and digital two-way radio, voice & data communications products and systems for private networks, wireless broadband systems and provides end-to-end enterprise mobility solutions to a wide range of enterprise markets. Going forward, we believe this collaboration will create more values for both the companies.

Brightpoint declared robust financial results for the second quarter of 2011 where both its revenue and EPS witnessed huge improvements of 57% and 80%, respectively. Moreover, the company results also surpassed the Zacks Consensus Estimate by a huge margin.

This fabulous performance was primarily attributable to a massive growth in the Distribution business supported by increasing demand for smartphones and tablets, which have higher average selling price and an improvement in supply-chain management system.

The business fundamentals of Brightpoint remain intriguing. Galloping demand for high-end smartphones and tablets throughout the world will drive the company’s valuation level higher in the near future.

We, thus, maintain our long-term Outperform recommendation on Brightpoint. Currently, Brightpoint has a Zacks#1 Rank, implying a short-term Strong Buy rating on the stock.