The use of wireless communications technologies continues to grow rapidly and has become widespread throughout the world. In fact, the wireless phone has become one of the most widely adopted consumer electronics products in the world. Cellular phones and other wireless communications devices allow consumers to talk, send and receive text and e-mail messages, send and receive audio, video, digital and other multi-media messages, browse the Internet and listen to music.

The wireless industry is experiencing rapid growth and significant technological advancement. International Data Corporation, or IDC, estimates that, as of December 31, 2003, there were 1.3 billion wireless mobile phone subscribers worldwide and estimates that there will be 2.0 billion subscribers by the end of 2008. IDC also estimates that the number of new wireless mobile phones sold globally per year will increase from 551.9 million in 2003 to 794.9 million in 2008. This growth has been driven, and it is expected to continue to be driven, by a number of key factors. Several geographic regions, such as China, India and Latin America, have relatively low levels of landline and wireless communications penetration. As prices have declined for both wireless mobile phones and services in these regions, there has been a substantial growth in subscribers. In addition, advancements in the technology of wireless phones, including the popularization of camera phones, color screens and video cameras, as well as the transition to more advanced technologies, such as wireless technology associated with General Packet Radio Services (GPRS), or 2.5G technology, or Universal Mobile Telecommunication Service (UMTS), or 3G technology, have driven a significant replacement of existing wireless phones worldwide. Declining unit prices and upgrade incentives offered by wireless network operators have also driven replacement purchases. In recent years, there has also been an acceleration in the growth of emerging technologies and platforms in the wireless communications and data markets, including through the recent allocation by various governmental authorities of unlicensed bands (frequencies).

The Company’s wholesale distribution business area consists of procurement, warehousing, transportation and delivery services, importation management, and financing. The Company has over 500,000 square feet of warehousing capacity at 21 locations in the Americas, including its three primary distribution facilities in Miami, Chicago and Mexico City. In some instances, as part of its service offerings, the Company purchases wireless products from manufacturers under letters of credit and offer competitive payment terms to its customers.

The Company is a leading provider of fixed wireless communications devices in Latin America and the world’s largest supplier of time division multiple access, or TDMA, fixed wireless communications products. Fixed wireless communications devices are those that are located at fixed locations, such as offices or homes, as opposed to devices that are mobile. The penetration rate of landline phones in developing countries is low and the need for residential telephone services offers a significant opportunity for the sale of fixed wireless products.

In its wireless data business area, the Company distributes wireless broadband infrastructure and data centric devices to value added resellers and integrators in the wireless industry, Internet service providers and wireless network operators. The Company’s wireless data products and solutions focus on two areas: Broadband and Infrastructure, and Consumer Data Devices. The Company has non-exclusive agreements with certain wireless broadband manufacturers to distribute their broadband radio products in Latin America. Broadband radios operate on both the unlicensed and licensed spectrum and address the demand for lower cost Internet connectivity and network expansion. The Company works with various manufacturers in the wireless personal digital assistant, modem, module and wireless Personal Computer Memory Card International Association, data card product areas, supporting over 100 integrators and application partners that develop applications and devices to provide high-speed mobile access to the Company’s network customers.

Cost of sales for the quarter ended March 31, 2004 was $313.8 million, compared to $181.5 million for the quarter ended March 31, 2003, an increase of 72.8%.

Selling, general and administrative expenses increased to $11.3 million for the quarter ended March 31, 2004 from $9.9 million for the quarter ended March 31, 2003

Interest expense increased to $1.9 million for the quarter ended March 31, 2004, from $1.2 million for the quarter ended March 31, 2003.

Net income increased $3.9 million, or 97%, from $4.0 million for the quarter ended March 31, 2003 to $7.8 million for the quarter ended March 31, 2004.