It's been a tough year for InPhonic (NASDAQ:INPC). In February, when the company reported its fourth-quarter results, investors dumped the stock. The shares fell 24% to $6.06, which was a 52-week low.

Well, investors got much better news Tuesday when the company announced its first-quarter results. Revenues increased to $87.4 million from $68.2 million in the year-ago quarter, and the net loss declined to $4 million, or $0.11 per share, from $7.4 million, or $0.22 per share. EBITDA for the first quarter was $2.1 million, $900 million more than in the comparable period.

Basically, InPhonic is a mega-online seller of wireless services. First, the company sells wireless service plans, devices, and accessories through its own websites -- such as Wirefly.com -- as well as third-party sites, such as RadioShack.com. Next, there are mobile virtual network operator services. This means a company can put its brand on a wireless service and sell it as if it were its own. This has become increasingly important as consumers consider mobile devices to be fashion items.

There are also data services, such as email, voice mail, faxes, conference calls, and calendars.

However, much of InPhonic's revenues come from selling wireless service plans from carriers such as Cingular, Sprint Nextel (NYSE:S), T-Mobile, Verizon (NYSE:VZ), and Alltel (NYSE:AT). InPhonic used to get its revenues from new customer activations, but this usually resulted in volatile revenues.

As a result, InPhonic has been renegotiating carrier agreements to "residualize" revenues. Huh? In other words, the company will get revenues over the life of the customer. This should mean more revenues, as well as more stability, over the long term.

What's more, with a customer database of 5 million, InPhonic plans to be more effective in cross-selling, such as with accessories, data features, and device protection plans.

Cell phones have become a necessity for most Americans. People also want to find ways to lower the costs of using their cell phones and are increasingly going to the Web for this. Often, this means going to an InPhonic-supported property.

This should propel long-term growth for the company. But the company's history has been volatile and may continue to be so with the move to a new revenue model with the carriers. And keep in mind, InPhonic is still losing money and running in a fairly competitive sphere. Waiting a couple quarters may be warranted before taking a look at the stock.

Alltel is a Motley Fool Income Investor recommendation. Want to get paid to invest? Mathew Emmert can show you how.

Fool contributor Tom Taulli does not own shares mentioned in this article.