Leap to Provide Updates on Business Performance at International CTIA Wireless Conference

Mar 21, 2011, 16:05 ET from Leap Wireless International, Inc.

SAN DIEGO, March 21, 2011 /PRNewswire/ -- Leap Wireless International, Inc. (Nasdaq: LEAP), a leading provider of innovative and value-driven wireless communications services, today announced that members of Leap management, including Doug Hutcheson, Leap's president and chief executive officer, and Walter Berger, Leap's executive vice president and chief financial officer, will discuss current trends and developments in the Company's business at meetings with financial analysts, institutional investors and others at the International CTIA Wireless conference to be held from March 22-24, 2011 in Orlando, Florida.

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As part of the meetings, Leap management intends to provide updates regarding the Company's financial and operational performance, including the continuing positive effects of the business initiatives that the Company introduced in the second half of 2010.  For the first quarter 2011, the Company expects:

  • Net customer additions to be approximately 300,000, reflecting increased customer activity in the quarter compared to the fourth quarter of 2010.
  • Customer churn to be less than 3.5 percent.
  • ARPU to continue to increase from third and fourth quarter 2010 ARPU of $37.13 and $38.14, respectively.
  • Adjusted OIBDA to reflect strong customer activity, with second quarter 2011 adjusted OIBDA expected to reflect strong first quarter customer additions, further increases in ARPU and typical seasonal customer activity.

These preliminary updates reflect management's current projections regarding future operating and financial performance as of the date of this release.  The Company does not undertake any obligation to publicly update or revise these forward-looking projections, whether as a result of new information, future events or otherwise. Actual results could differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with the Company's business, including those described later in this release.

About Leap

Leap provides innovative, high-value wireless services to a fast-growing, young and ethnically diverse customer base. With the value of unlimited wireless services as the foundation of its business, Leap pioneered its Cricket® service. The Company and its joint ventures now operate in 35 states and the District of Columbia and hold licenses in 35 of the top 50 U.S. markets. Through its affordable, flat-rate service plans, Cricket offers customers a choice of unlimited voice, text, high-speed data and mobile Web services. Headquartered in San Diego, Calif., Leap is traded on the NASDAQ Global Select Market under the ticker symbol "LEAP." For more information, please visit www.leapwireless.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management's current expectations based on currently available operating, financial and competitive information, but are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated in or implied by the forward-looking statements.  Our forward-looking statements include discussions about customer activity and expected financial and operational performance and are generally identified with words such as "believe," "expect," "intend," "plan," "will," "could," "may" and similar expressions. Risks, uncertainties and assumptions that could affect our forward-looking statements include, among other things:

  • our ability to attract and retain customers in an extremely competitive marketplace;
  • the duration and severity of the current recession in the United States and changes in economic conditions, including interest rates, consumer credit conditions, consumer debt levels, consumer confidence, unemployment rates, energy costs and other macro-economic factors that could adversely affect demand for the services we provide;
  • the impact of competitors' initiatives;
  • our ability to successfully implement product and service plan offerings, expand our retail distribution and execute effectively on our other strategic activities;
  • our ability to obtain and maintain roaming and wholesale services from other carriers at cost-effective rates;
  • our ability to maintain effective internal control over financial reporting;
  • our ability to attract, motivate and retain an experienced workforce, including members of senior management;
  • future customer usage of our wireless services, which could exceed our expectations, and our ability to manage or increase network capacity to meet increasing customer demand;
  • our ability to acquire additional spectrum in the future at a reasonable cost or on a timely basis;
  • our ability to comply with the covenants in any credit agreement, indenture or similar instrument governing any of our existing or future indebtedness;
  • our ability to integrate, manage and operate our new joint venture with Pocket Communications;
  • failure of our network or information technology systems to perform according to expectations and risks associated with the upgrade or transition of certain of those systems, including our billing system; and
  • other factors detailed in the section entitled "Risk Factors" included in our periodic reports filed with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2010, filed with the SEC on February 25, 2011.  

All forward-looking statements included in this news release should be considered in the context of these risks. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Investors and prospective investors are cautioned not to place undue reliance on our forward-looking statements.

Leap is a U.S. registered trademark and the Leap logo is a trademark of Leap. Cricket, Cricket Wireless, Cricket Clicks, Jump, Jump Mobile, Flex Bucket, Real Unlimited Unreal Savings and the Cricket "K" are U.S. registered trademarks of Cricket. In addition, the following are trademarks or service marks of Cricket: BridgePay, Cricket By Week, Cricket Choice, Cricket Connect, Cricket Nation, Cricket PAYGo, Muve, Muve Music, Muve Money, Cricket Crosswave, Seek Music, MyPerks, Cricket MyPerks and Cricket Wireless Internet Service. All other trademarks are the property of their respective owners.

SOURCE Leap Wireless International, Inc.