Leap Wireless Sales Drop

Leap Wireless (NASDAQ: LEAP  ) took a stumble during its latest earnings report, released this morning. The wireless business's revenue dropped 10% compared to Q3 2012, to $694 million. Gross customer additions were also down 34% compared to the same time last year, dropping to 370,971. Leap CEO S. Douglas Hutcheson said the drop was due to "increased competitive activity and customer demand for an affordable purchase path to higher-priced devices."

Margins didn't bear any good news, either. Leap saw a $164.8 million decrease in its operating income, dropping to negative $83.4 million. Net income fared even worse, dropping from $26.9 million in Q3 2012 to negative $160.5 million this quarter.

Of the recent news that Leap shareholders had overwhelmingly voted in favor of a merger transaction with AT&T, Hutcheson noted that both companies will "continue to work closely with the Federal Communications Commission and Department of Justice on their review of the transaction."

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2718970, ~/Articles/ArticleHandler.aspx, 10/24/2014 9:43:25 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement