To: biostruggle who wrote (120331 ) 6/25/2002 10:06:32 PM From: waitwatchwander Respond to of 152472 Alamosa stands by current quarter outlook Reuters, 06.25.02, 11:37 AM ETforbes.com CHICAGO, June 25 (Reuters) - Alamosa Holdings Inc. (nyse: APS - news - people), which sells wireless service under the Sprint PCS brand, on Tuesday stood by its second-quarter and full-year subscriber growth outlook as it prepares to launch its new advanced network capable of high-speed Internet connections. Alamosa, the largest Sprint PCS Group (nyse: PCS - news - people) affiliate in terms of subscribers, said it still expects to add 15,000 to 25,000 net new customers in the second quarter and 190,000 to 210,000 net new customers for the full year. Sprint PCS is the nation's fourth-largest wireless operator. Alamosa Chief Executive David Sharbutt told investors at the Wachovia Securities annual equity conference in Nantucket, Massachusetts, that it expects a customer turnover rate of between 3.1 percent and 3.3 percent in the second quarter. That is expected to decline in the second half of the year, bringing down the full-year customer turnover rate to between 3 percent and 3.2 percent. Sharbutt said he continues to expect a full-year operating cash flow of $25 million to $35 million. Capital expenditures are expected to be about $85 million for the year, sharply down from $150 million in 2001. As of the end of the first quarter, the company had $150 million in cash and access to an undrawn debt facility of $25 million. Alamosa said it will not need to drawn on that additional line of credit. The company still expects to have positive free cash flow in midyear 2003. It said it was fully financed until that point. Sharbutt said Alamosa was on track with its plans to launch in midsummer an advanced network that will allow customers to surf the Web and download pictures and music. Shares of Alamosa rose 4 cents or 3.5 percent to $1.17 on the New York Stock Exchange in late morning trade. The company's shares have fallen 90 percent since the beginning of the year as investors worried about slowing growth and intensifying competition in the wireless sector. Copyright 2002, Reuters News Service