Sprint Stumbles Again
Sprint today reported the loss of 60,000 wireless subscribers for the summer quarter. In contrast, in their respective third quarters, AT&T added over 1 million new iPhone users, signed up two million new subs, and Verizon reported 1.6 million new users.
Reston, Va.-based Sprint said its net income for the third quarter dropped 77 percent to $64 million from $279 million the year before due to lower wireless revenue. The firm's revenue dropped 4.2 percent to $10 billion from $10.5 billion.
The earnings per share of $0.23 for the quarter slightly beat Thomson First Call analyst estimates of $0.22. Sprint, however, didn't meet revenue expectations of $10.2 billion.
It has been another rough quarter for the struggling wireless operator. CEO Gary Forsee resigned in October following pressure from shareholders to be replaced by CFO Paul Saleh while the board looks for a replacement outside the company. This instantly threw Sprint's plans for a nationwide WiMax network in 2008 into question, although the company has since said it intends to continue with its wireless broadband plans.
Investors continue to spank Sprint for not making up ground against its larger rivals. The firm's shares were down $0.40, or 2.34 percent, in morning trading on the New York Stock Exchange.
— Dan Jones, Site Editor, Unstrung