Leap Wireless International (LWIN) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Leap Wireless International (LWIN)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: J.B.C. who started this subject	4/4/2002 11:22:02 AM
From: arun gera	Read Replies (1) of 2737

The Corporate G&A Mystery There has been conflicting information available on the true CCU for Leap's Business. While the Leap Management continues to reiterate that they have a uniquely low-cost model, the G&A numbers for the 4th quarter 2001, and the corporate G&A numbers projected for Year 2002 in the 10K seem very bloated. If the corporate G&A is included in the true CCU, Leap's business model does not seem particularly low cost. But if Leap is running an R&D business-within-business entirely separate from the core Cricket model and funding it by Corporate G&A, then the Cricket portion of the Corporate G&A is a lower number. So what is the breakdown between corporate G&A for Cricket activities and corporate G&A for non-cricket activities? In the latest 10K, Leap mentions that approximately $38 million has been reserved for Corporate G&A. Does this portion of the corporate G&A include any for Cricket-related activities? I don't think so. This is the missing $38 million that carleeromagnoli on the Yahoo Board has been trying to track for a while. In her presentations, Sue has mentioned a Cricket CCU cost of $31 for Q4 2001. The actual calculated number from the 4th quarter 2001 numbers is $34.4. The missing amount - $3.4/subscriber/month for Q4 2001. Based on 0.9 million average subscribers in Q4 2001, the quarterly number is $9.2 million and the annualized number is $37 million. Close enough to the separately budgeted corporate G&A for the year 2002. Therfore the Cricket portion of G&A for Q4 2001 was $46 million and not $55 million that the analysts were alarmed by. $46 million number could be reduced further by costs savings. PCSTEL is expecting $40 million for Q1 2002. PCSTEL, does your $40 million include the non-cricket $9 million corporate amount? Arun

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next