Leap Wireless Sales Drop

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Leap Wireless took a stumble during its latest earnings report, released this morning. The wireless business's revenue dropped 10% compared to Q3 2012, to $694 million. Gross customer additions were also down 34% compared to the same time last year, dropping to 370,971. Leap CEO S. Douglas Hutcheson said the drop was due to "increased competitive activity and customer demand for an affordable purchase path to higher-priced devices."

Margins didn't bear any good news, either. Leap saw a $164.8 million decrease in its operating income, dropping to negative $83.4 million. Net income fared even worse, dropping from $26.9 million in Q3 2012 to negative $160.5 million this quarter.

Of the recent news that Leap shareholders had overwhelmingly voted in favor of a merger transaction with AT&T, Hutcheson noted that both companies will "continue to work closely with the Federal Communications Commission and Department of Justice on their review of the transaction."


The article Leap Wireless Sales Drop originally appeared on Fool.com.

Fool contributor Caroline Bennett has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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