San Diego Business Journal

Leap Wireless Reports Net Loss of $111.3M for Q1

Thursday, May 2, 2013

Leap Wireless International Inc., the San Diego flat-rate wireless carrier that does business under the Cricket brand, reported a first quarter net loss attributed to common shareholders of $111.3 million compared with a net loss of $98.4 million in the like quarter of 2012.

Revenue for the quarter was $789.9 million, down from $825.6 million in the like quarter of last year.

Cricket shifted its business plan over the past year, emphasizing the sale of higher quality smartphones and has seen a big decline in its subscriber base.

As of March 31, the company reported 93,000 in net customer losses to bring its total customers to 5.2 million. That was down 16 percent from the same quarter last year when it had 6.2 million customers.

The changes led to a 3 percent increase in its monthly average revenue per user, a key industry metric, from $42.59 to $43.72.

Cash on hand at the end of the quarter was $667 million, down from $675 million at the end of December. The company completed a $1.425 billion senior secured term loan from a syndication of megabanks that it’s using to refinance existing debt.

Shares of Leap, traded on Nasdaq under LEAP, were down recently to about $5.50, and have ranged from $4.28 to $8.16 over the past 52 weeks.

— Mike Allen