Piper Jaffray Comments On LEAP Pre-Announcement

Piper Jaffray Comments On LEAP Pre-Announcement Although the first quarter has not yet wrapped up, Leap Wireless International Inc. LEAP pre-announced expectations for 1Q11 results, Piper Jaffray reports. “Subscriber metrics are better than expected, but we believe the company intimated that EBITDA could be under some pressure due to the strong customer activity,” Piper Jaffray writes. “Leap announced that it expects net additions to be approximately 300k and churn to be less than 3.5%. We are forecasting net adds of 155k, including 20k broadband losses, and churn of 3.6%. According to the company, ARPU should increase sequentially from $38.14 in 4Q10. Our 1Q11 estimate is $39.” Leap closed Monday at $14.05.