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Technology Stocks : Leap Wireless International (LWIN) -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (1748)	3/14/2002 12:56:22 AM
From: KyrosL	Respond to of 2737

>>G/A at 30 million a quarter would still be outrageous! I guess having your senior management come from large rich companies has its disadvantages.

To: pcstel who wrote (1748)	3/14/2002 2:54:45 AM
From: bruce_hamilton	Read Replies (1) \| Respond to of 2737

pcstel, Re G&A Harvey may have one time charges for the all the new markets we opened the last quarter. First and last rent payments, office tenant improvements, and office furniture expenses, maybe even some of the permit and cell site building supervision and acquisition costs are in the G&A pot for the quarter. I would also imagine a huge expense could be attributed to the cost of training the new employees to operate these new markets. I know in my business when we hire a new employee they usually need to work with someone for a few weeks to learn the ropes. The cost of staffing these new markets can be substantial until they are up to speed. Two people doing the work of one really ruins the bottom line fast. LEAP also needed to set up truck and auto purchases and or leases to run the support staff for the network. Needless to say judging from the RIF notice last week Harvey has put a lock on the supply cabinet! I think you are right the G&A line should be a no brainer to reduce and it goes right to EBITDA break even. We will see in April. Do you think the cost of Slice R&D is in G&A, because Slice sure doesn't have a ROI yet... Still looking for a REAL DATA showing this year. Bruce