o.t. here's more faith:
(what price are investors willing to pay for "potential profits"? at least Dell has mostly predictable profits. i have nothing against LWIN's business plan; but it's success is contingent on so many unknown variables...)
Monday October 23, 7:30 pm Eastern Time
Leap sees growing customer base
(UPDATE: adds closing stock price, details from CEO interview)
SAN DIEGO, Oct 23 (Reuters) - Wireless communications carrier Leap Wireless International Inc. (NasdaqNM:LWIN - news) on Monday said it sees its total customer base growing to 1 million by the end of 2001.
That projection compares with the 62,500 customers the company had as of the end of September. Leap also predicted it would reach $400 million in annualized service revenues by the close of next calendar year, compared to operating revenues of $36.1 million in this year's first nine months.
The San Diego-based upstart also reported a net loss of $54.1 million, or $2.10 a share, for its new third quarter of fiscal 2000. Leap changed its fiscal year end to Dec. 31 from Aug. 31 to better align itself with the rest of the wireless industry.
Total operating revenues for the third quarter, which represent the results of Leap's U.S. operations, were $7.5 million, a 34-percent rise from the year-ago quarter, the company said.
Shares of Leap Wireless ended down 3/8 to $50-5/8 on Nasdaq.
Leap also said it will expand into new markets with the launch of its Knoxville, Tenn. network, scheduled to begin operating on Wednesday. The company said additional markets in the South, Southwest and Midwest are scheduled to come on line for a total of 10 markets by the end of the calendar year.
Company Chairman and Chief Executive Harvey White said in an interview Leap would aim to add 25 new markets in calendar year 2001. Leap offers a flat-rate, ``all-you-can-talk'' service called Cricket in Chattanooga and Nashville, both in Tennessee, and served 62,500 customers as of the end of September.
``It's hard to predict when total company might reach profitability because we keep adding markets, so if we are successful, it will delay total profitability,'' he said.
White noted that in markets so far the company has seen break even numbers after 12 to 15 months for EBITDA, the term for earnings before interest, taxes, depreciation and amortization. |
