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

To: bruce_hamilton who wrote (1752)	3/14/2002 10:07:56 AM
From: pcstel	Respond to of 2737

burce: 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. Agreed! In addition, it was the Holiday season. If you remember earlier, I indicated that the expenses of launching all of those markets could not have come from S/M and still keep CPGA under $300. In addition, If you follow the Employment Ops. on the Cicket Site. They start hiring what seems like a couple of months before the markets opened! Those saleries and costs had to go somewhere before the markets were launched, and before offseting Revenues start coming through the door! If they spend so much time on reducing COS expenses, they should also spend a little time on decreasing Administrative Costs! By something like 45% or so. I almost think Harvey should have created a "Launch CPGA" metric which showed G/A without all of the launch expenses, and integrated into one time CPGA charges! This way! The G/A amounts that are in effect a "one time expense" are represented as such, and not represented as ongoing G/A budgets! The great thing about LWIN is that they have the margins to reach EBITDA, and UFCF in record time. The question is. Do they have the "resolve" to make the cuts in G/A to make it happen! PCSTEL