NEWS: Leap Wireless International Inc. on Friday reported a third-quarter loss as a drop in customers led to weaker revenue. The prepaid wireless company, which operates as Cricket, is being acquired by AT&T for $1.19 billion.
DETAILS: The San Diego-based company said it had 4.6 million customers as of the end of the quarter on Sept. 30, down from 5.6 million last year. It also dealt with $16.4 million in merger-related expenses during the quarter.
NUMBERS: Leap posted a loss of $185.4 million, or $2.37 per share, for the quarter that ended in September. That is compared to net income of $25 million, or 32 cents per share, last year. Revenue fell 10 percent to $694 million. Analysts polled by FactSet were anticipating a loss of $1.19 per share on revenue of $689.8 million.
FUTURE: The company agreed in July to be acquired by AT&T for $15 per share. Leap shareholders approved the deal in October but still needs regulatory approval before it can move forward.
STOCK: Shares added 2 cents to reach $16.20 by midmorning, roughly in line with broader market activity. Its share price more than doubled in July on the AT&T deal and has remained fairly steady since.