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Mar. 1, 2007

A 49 percent increase in equipment costs, additional marketing charges and other expenses helped reduce Leap Wireless' results, with a fourth-quarter loss of $39.4 million.

Even after Leap has quadrupled net customer additions to 262,000 for the quarter, it wasn't enough to show a profit.

Revenues increased 37 percent from $228.9 million to $314.5 million and so did operating expenses, climbing 49 percent from $218.2 million to $324.1 million.

Leap's large increase in costs ate up the revenue improvements and amounted to a quarterly loss of 60 cents per share.

Analysts had expected a loss of only 35 cents per share, and the company’s stock dropped 4.2 percent in trading on Feb. 27, closing at $61.98.

Overall, total losses for last year came to $4.1 million, compared with a profit of $30 million the year before.

Revenue rose to $1.14 billion from $914.7 million.

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Source: Wireless Week