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

To: Jon Koplik who wrote (2215)	6/15/2002 11:26:54 PM
From: Jon Koplik	Read Replies (1) \| Respond to of 2737

Leap Wireless Fraud -4: 5% 1Q Customers Involved In Fraud DOW JONES NEWSWIRES Susan G. Swenson, Leap Wireless' president and chief operating officer, said in the release, "We have ceased doing business with a number of indirect dealers and we have been working with law enforcement as appropriate throughout this process to prosecute those who steal from our company." Leap Wireless previously said about 5%, or 69,000, of its reported customers at the end of the first quarter may have been involved with fraud. As reported in the Form 10-Q, Leap Wireless said it expects to see a negative impact on the calculated revenue per user, acquisition cost and churn metrics during the second quarter of 2002, with improvement expected later in the year as the new programs, systems and processes continue to mitigate the effects of fraud. Following fraud concerns, analysts downgraded Leap Wireless' stock amid fears the carrier could default on vendor loans. "Leap has very little breathing room," wrote UBS Warburg analyst Colette Flemming in a research note downgrading the stock from a strong buy to hold. But in Thursday's release, Leap Wireless said if it continues to execute its business plan, operations will generate sufficient cash flow, allowing the company to make required principal and interest payments to lenders. Updated June 13, 2002 8:34 a.m. EDT Copyright © 2002 Dow Jones & Company, Inc. All Rights Reserved