Mere months after Leap Wireless CFO Amin Khalifa resigned, the company announced today that it would restate financial results for fiscal years 2004 through 2006 to fix errors in its reported service revenue, equipment revenue and OPEX. The errors are largely attributed to customers who voluntarily disconnected their service, but whose bills were still counted as revenue. The total reduction to service revenue and operating income will be around $20 million, according to the company. Leap said Q3 service revenue was between $348 million and $352 million, while analysts estimated revenue of $417.7 million.
For more on Leap's restatements:
- read this press release [1]
Related Articles:
Leap board member resigns after MetroPCS bid Article [2]
Leap Wireless CFO Amin Khalifa resigns Article [3]
Links:
[1] http://www.fiercewireless.com/press-releases/leap-restate-financials-2004-2006
[2] http://www.fiercewireless.com/story/leap-board-member-resigns/2007-09-12
[3] http://www.fiercewireless.com/story/leap-reviews-acquisition-offer-cfo-resigns/2007-09-07