Leap Wireless Restates Its Financials - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance

Leap Wireless Restates Its Financials

The company said the restatements were not attributable to any misconduct and that billing problems were the main issue.

Leap Wireless International, a pay-as-you-go wireless operator, reported that it has revised more than three years of its financial results.

According to filings at the Securities and Exchange Commission, Leap cut operating income by $22.5 million and service revenue by $7.5 million between 2004 and 2007. During the period, Leap had reported an operating profit of $102.2 million and $3.09 billion in service revenue.

The restatements, reported to the SEC this week, weren't unexpected and were suggested in the wake of an internal review of Leap's financials. The company has said the restatements were not attributable to any misconduct on the part of its employees and explained that billing problems were the main cause for the restatement.

A review of Leap's financials came last fall in the midst of an offer by another pay-as-you-go mobile phone service provider -- MetroPCS -- which sought to acquire Leap for $5.2 billion. Leap declined the MetroPCS offer at the time, and there was no indication Leap's planned restatement of its financials had any bearing on the proposed acquisition.

There had been intense interest in a combination of the two companies, because they have somewhat complementary approaches to generally different markets, with Leap focusing on rural customers and MetroPCS on urban customers. A merged company would have created a new nationwide network capable of competing with established nationwide mobile phone service providers.

Standard & Poor's Ratings Services removed Leap from its credit watch negative list after the restatement, Thomson Financial reported. "Although our immediate liquidity concerns have been partially mitigated, we have determined that the reinstatement of a positive outlook will hinge on the company's ability to limit further accounting issues, which would require a minimum of two quarters of timely and accurate financial reporting," S&P said.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Slideshows
IT Careers: 10 Industries with Job Openings Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/27/2020
Commentary
How 5G Rollout May Benefit Businesses More than Consumers
Joao-Pierre S. Ruth, Senior Writer,  5/21/2020
News
IT Leadership in Education: Getting Online School Right
Jessica Davis, Senior Editor, Enterprise Apps,  5/20/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll