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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Ruffian who wrote (17083)	12/4/2001 6:07:19 PM
From: Cooters	Read Replies (1) \| Respond to of 196564

Sprint PCS sees 2002 sales up by 30 percent expanded from earlier edition, including 3G launch in March! By Carey Gillam OVERLAND PARK, Kan. Dec 4 (Reuters) - In a bid to boost market enthusiasm for its business strategies, Sprint Corp. on Tuesday spotlighted its operational jewel, the wireless Sprint PCS Group <PCS.N>, telling market analysts 2002 sales could grow by more than 30 percent to $13 billion. "We have very strong PCS distribution channels and have great momentum in both the consumer and business markets," said Sprint CEO William Esrey in a presentation to more than 200 analysts and journalists. Westwood, Kansas-based Sprint Corp. said Tuesday that Sprint PCS, the No. 4 U.S. wireless provider, expects to post fourth-quarter revenues of $2.7 billion to $2.8 billion and full-year 2001 revenues of about $9.7 billion to $9.8 billion. Sprint PCS predicted it will add 4.2 million net new subscribers in 2001 and 3.6 million to 3.7 million in 2002, compared with 9.5 million in 2000. The company said that cash requirements for Sprint PCS in 2002 will be $1.8 billion, which Sprint will meet through the issuance of additional debt and the monetization of assets. Company officials said a focus on building business accounts, coupled with targeted growth in the "under-penetrated" subprime market and other consumer segments, would fuel growth in 2002 and beyond. "PCS in 2002 will extend its leadership," said PCS president Chuck Levine. "We will continue to expand and attack new market segments as long as those are profitable." The launch of a range of new business products in 2002, including a suite of mobile access to email, messaging, calendar and other data services, along with a 33 percent increase in sales force staffing, should help PCS capture a disproportionate share of the business customer segment, company officials said. They said that, as of Tuesday, PCS had two million wireless web subscribers. The launch of Sprint's "3G" third-generation technology in March, which will cost about $200 million in 2002 and is aimed at increasing voice capacity and improving data capability, should drive increases in market share and customer usage, company officials said. Seeking to address market concerns that PCS's rapid growth of late has been largely reliant on subprime customers who turn over at a rapid rate, company officials said the customer segment was a profitable one that the company would not back away from. About 25 percent of PCS's customers are considered subprime, a lower rate than many competitors, and a figure that officials said show PCS is "under-penetrated" in that market. "Whether they are prime or subprime we will go after them," said Levine. "Yes, our churn is high, but it is still a profitable program, in fact a little bit more profitable than we thought it was when we launched the program." Churn, or the rate at which subscribers leave the service, is expected to be around 3 percent for fourth quarter 2001, and in the upper 2-percent range for the full year of 2002. In its presentation Tuesday, Sprint said full-year PCS revenues are expected to grow more than 50 percent in 2001 to about $9.7 billion to $9.8 billion. Sprint said it sees 2002 earnings before interest, taxes, depreciation and amortization (EBITDA) in a range of $3.0 to $3.1 billion, driven by a growing customer base. The company reiterated its 2001 EBITDA forecast of $1.6 billion. Sprint PCS shares were off 46 cents, or 1.8 percent, at 24.98 in afternoon trading on the New York Stock Exchange. 14:24 12-04-01