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."
