Earnings in Brief:
The latest results coming out of the wireless industry offer a mixed bag. Among the latest companies to report are iPCS, Brightpoint, Napster, MobilePro Corporation, USA Mobility and SpectraLink Corporation.
Sprint PCS affiliate iPCS posted third quarter revenue of $126.6 million, which was up from $109.1 million in the same quarter in 2005. The company reduced its year-over-year net loss to $6.7 million, or 40 cents per share from $16.3 million, or 99 cents per share. During the quarter, the company attracted 16,800 net new subscribers, which was down from year-ago adds of 17,400. Monthly churn dipped to 2.5 percent to 2.7 percent. The company is pleased with its results especially since the Sprint/Nextel merger have been impediments to its growth, iPCS said in a prepared statement.
Brightpoint managed to reverse a year-ago loss, posting earnings of $8.8 million, or 17 cents a share, compared to a loss of $6.2 million, or 12 cents a share, a year ago. Sales came in at $633.7 million up from just under $545 million a year ago. The company handled 2.6 million wireless devices during the quarter, a year-over-year increase of 17 percent. Looking ahead, the company expects the fourth quarter to experience growth of between 5 percent and 7 percent sequentially. The number of handset units sold by the global wireless industry will be in the range of 255 million to 260 million units, according to Brightpoint's forecast.
Napster's fiscal second quarter results include net revenue totals of $25.5 million, which is up 9 percent from $23.4 million in the year earlier period. Revenue, excluding some items, came in at $24.9 million, up from $21.3 million. "We believe the dramatic growth projected for music-enabled cell phones will provide a very significant growth driver for Napster going forward," says Chris Gorog, Napster's chairman and CEO. "We look forward to continuing to aggressively expand the footprint for Napster Mobile and will be announcing additional carriers before the end of the year."
MobilePro Corporation generated second quarter revenue of $23.4 million, which was up 0.3 percent when compared to a year ago. The company reported a narrower net loss on a GAAP basis of $4.1 million. In the same quarter a year ago, the net loss was $4.7 million. "Although we are pleased that our top line showed some growth over our first fiscal quarter and we have started to rein in expenses, we still have significant room for improvement," said Jay Wright, MobilePro chairman and CEO, in a prepared statement.
USA Mobility reported revenue for the third quarter of $119.6 million, operating income of $14.9 million and net income of $8.7 million, or 31 cents per share. The wireless messaging services provider narrowed its net unit loss to 172,000 from 203,000 in the prior quarter and 252,000 in the first quarter. USA Mobility posted average revenue per unit (ARPU) of $8.60, which was down slightly from $8.74 in the second quarter and $8.80 in the first quarter.
SpectraLink Corporation announced third quarter consolidated revenue of $38.0 million, a 7 percent increase year-over-year. The company reported a gross profit of $21.4 million compared to $21.8 million pro forma results for the third quarter of 2005.