InfoTech Marketing Press Release

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Littleton, CO --  Wireless inventory management improved by 13% in the First Quarter, 2004 over the Fourth Quarter, 2003, according to a study released today by InfoTech Marketing.  While the total cost of equipment sales rose, inventory levels fell by $195 million, close to Third Quater levels.  The days of sales tied-up in inventory fell from 48.2 to 41.9, quarter-to-quarter.  Of the 16 carriers studied, 10 reduced their inventory days, while 6 experienced an increase.   

"As expected, the First Quarter offset the inventory accumulation in the Fourth Quater's holiday season," according to Tim Walters, President of InfoTech Marketing.  "Cingular, AT&T, and Sprint all significantly depleted their inventory.  Carriers should look to continue this efficiency into the Second Quarter."

Alamosa PCS achieved the best efficiency with 24.7 days of sales in inventory.  Of the large carriers, Cingular supplanted Verizon as the most efficient, maintaining 32.9 days of sales in inventory. 

“Our models show that almost $500 million of cash flow could be generated by carrying only 30 days of inventory,” Walters added.  “Even if the carriers with over 40 days of inventory get to just 40 days, they would produce $200 million of industry cash flow.  Carriers can attain these levels through a commitment to inventory management, better forecasting, and improved ordering procedures."

The study compares 16 of the 20 largest wireless carriers with available data for both quarters.  The data originates from SEC filings or carriers’ investors relations departments.

InfoTech Marketing is a Littleton, CO based consulting company that assists carriers with inventory management.  Wireless carriers around the world have used the company's inventory management services.