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

To: Dennis Roth who wrote (1989)	5/5/2002 11:21:14 AM
From: Dennis Roth	Respond to of 2737

Leap Morphs Into Operating Mode, Cuts Staff wirelessweek.com BY KRISTY BASSUENER MAY 3, 2002 Leap Wireless International Inc., operator of the Cricket Comfortable Wireless service brand, today announces staff cuts to reduce its costs and to fit its transition from buildout mode to in-market growth. The company, which outlined upcoming cuts in its first-quarter conference call last Wednesday, says it has laid off 50 employees. The cuts will save Leap an additional $3 million over the remainder of 2002, and leave a total of 1,710 employees across the company. But the savings will come at a cost of $860,000 in the form of a second-quarter one-time charge, the company says. 'This reduction is a continuation of our transition from building out our 40 markets to the ongoing operation of these markets, combined with the uncertainties surrounding Auction 35,' says Harvey White, Leap's chairman and CEO. The FCC returned $60 million -- or 85 percent -- of Leap's Auction 35 deposit after holding the money interest free for a little over a year. Despite the uncertainty over where the licenses may end up and a pending Supreme Court ruling, the carrier may be obligated to the auction results at some point. If the auction eventually is validated, 'we feel we paid reasonable prices for good licenses,' says Dan Pegg, Leap's senior vice president, adding that the company would build out beyond its current 40 markets if it did receive the contested licenses. Leap made cuts during the first quarter as well, including 16 people involved in its WAP initiative and Backwire customized content project. Following a mid-April surge above the $10 mark, Leap shares fell by more than 5 percent today to $6.38.