In financial hot water, CellStar hires Adams to help remake image

CARROLLTON, TX: Just one week after it released a profit warning for the third quarter, telecom wholesaler CellStar announced it has hired Stephen Adams as its new director of IR and corporate communications.

CARROLLTON, TX: Just one week after it released a profit warning for the third quarter, telecom wholesaler CellStar announced it has hired Stephen Adams as its new director of IR and corporate communications.

CARROLLTON, TX: Just one week after it released a profit warning for the third quarter, telecom wholesaler CellStar announced it has hired Stephen Adams as its new director of IR and corporate communications.

As a result of the warning, the company's S&P rating was downgraded from stable to negative.

Adams is aware that he has a tough job ahead, particularly since the IR and communications position has been vacant for about a year. He said the management wanted to make strategic changes before hiring someone, following the departure of J. Warren Henry.

'The primary challenge is to rebuild our image and our reputation,' Adams said.

'We have a plan in place and actions that we are taking to improve the profitability of the company, which have to be articulated to the investment community,' Adams said

CellStar expects a net loss of up to dollars 14 million for the quarter ending August 31, due in large part to a surplus of wireless phones in Asia-Pacific and Latin America, and a costly effort to improve the quality of its inventory.

Adams was formerly director of IR for Zurn Industries, a plumbing products manufacturer, from 1989 to 1998. He then joined FirstPlus Financial Group as VP of IR and also worked as an independent consultant for such companies as Internet America.



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