Leap expands portfolio of licenses to 41.7 million POPs

Wireless communications carrier Leap Wireless International Inc. (San Diego, CA) reported strong results for its Cricket wireless service during Leap's third quarter of fiscal year 2000, ended May 31, 2000. Cricket customers in both Chattanooga and Nashville, TN grew to 46,000 during the quarter, up from 37,000 at the end of the previous quarter. The carrier plans to launch the Cricket service in eight markets by the end of this calendar year and 25 markets by the end of 2001. It now owns or has the rights to acquire wireless operating licenses covering 41.7 million potential customers in 27 states to offer Cricket service.

Cricket added 9,000 subscribers in its Nashville and Chattanooga markets, an increase of nearly 25% over the previous quarter and bringing total penetration of these markets to 3.7% on a covered population basis, up from 3.0% at the end of second quarter. Acquisition costs per gross addition (CPGA) for the third fiscal quarter was under $230.

Operating revenues for Leap's consolidated and unconsolidated operating companies for the three months ending May 31, 2000 rose to $36.7 million, a 120% increase from the prior quarter. Consolidated operating revenues of $16.9 million were recognized by Smartcom PCS and Cricket Communications, which began fully consolidating Chase Telecommunications in this quarter. No revenues were consolidated prior to the fourth quarter of fiscal 1999, and the results of Leap's foreign operating companies are as of and for the three months ended March 31, 2000, a two-month reporting lag. Leap's consolidated net loss for the three months ended May 31, 2000, was $32.2 million or $1.26 per share, compared to $46.7 million or $2.60 per share for the same period in fiscal 1999.

Edited by Ellen Jensen