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Sunday, Sep 25, 2022
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Leap Wireless Grows, Rings Up Loss

Leap Wireless International, parent of Cricket Communications, reported Feb. 28 a net loss of $39.4 million for the fourth quarter compared to a net profit of $5 million for the like period of 2005.

The company, spun off from Qualcomm Inc. in 1998 and which emerged from Chapter 11 bankruptcy in 2004, had revenue of $314 million for the fourth quarter, up 37 percent from the like period of 2005.

Leap said increased capital spending to build out its networks in new cities, including San Diego, plus upgrade costs for existing networks resulted in the net loss.

For the full year, Leap posted a net loss of $4.1 million compared to net income of $29.9 million in 2005. Revenue for last year was $1.13 billion compared to $914 million in 2005.

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In 2006, Leap gained a net of 592,000 customers, bringing the total to 2.2 million. It forecast adding another 260,000 to 320,000 in the first quarter.

Traded on Nasdaq under LEAP, shares rose 8.7 percent Feb. 28 to $67.40, and were climbing past $68 in midday trading March 1.

, Mike Allen

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