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May 11, 2008

After the markets closed on Friday, the international division of Leap Wireless reported a narrowing net loss.

Leap Wireless said its sales and service revenues increased during the first quarter.

But net customer additions were slightly down to just over 230,000, from 318,000 for the same quarter in 2007, and "customer churn" was up to 3.6 percent from 3.4 percent.

The no-contract carrier posted a net loss of $18.1 million, or 27 cents per share, for the first quarter of 2008, down from $24.2 million, or 36 cents per share, for the same period in 2007.

Sales rose 19 percent to $468.4 million, and service revenues rose to $398.9 million from $321.6 million.

Doug Hutcheson, chief executive and acting CFO, lauded the company’s momentum during the quarter, saying in a statement: “Our consolidated adjusted OIBDA results reflect $16.3 million of spending for our new initiatives, including our plans to launch approximately 8 million additional covered POPs by mid-2008."

Hutcheson said the numbers include the markets that were recently launched in Oklahoma and Texas, and added that the company also plans to expand its mobile broadband product offering following the successful introduction of its EV-DO Rev A tri-band USB broadband device.

He concluded by saying "we are pleased with the significant progress we are making with both of these new initiatives.”

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Source: Leap Wireless.