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Technology Stocks : Leap Wireless International (LWIN)

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To: rharshman who wrote (1893)4/16/2002 6:50:44 PM
From: arun gera   of 2737
 
Breakdown of CCU components

This is the Q4 2001 breakdown of various components as compiled by carleeromagnoli, who was active on the Yahoo thread a month ago. The data was taken from one of Sue's slides. Still can't explain about $3.5/sub/month.

Cell Site and Network 5.6
Customer Service 2.24
Billing 1.71
Interconnect 0.81

Cost of Service??? 10.36

Customer Care 6.92
Corporate G&A 10.83
Market G&A 2.71

Cash Cost Unit 30.82

Unaccounted G&A/Cost of Service (One-time?)3.55

CCU (tallying with Q4 2001 Numbers) 34.37

The unaccounted for G&A of $3.5/month/sub or about $9.5 million is explained in various ways. In one of the Analyst reports it was stated as a one time expense for the quarter.

It also annualizes to the projected $38 million Corporate G&A for the year 2002, as mentioned in the latest 10-K.

Arun
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