SAN DIEGO-Leap Wireless International Inc. reported amendments to its previously filed Form 10-Q for the third quarter of last year that also have effected the company’s ability to file fourth-quarter and year-end 2004 financial results.
In an 8-K filing with the Securities and Exchange Commission, Leap said the changes resulted from errors in accounting for rent expense and remediation obligations associated with real property leases; an over-statement of liabilities that should have been eliminated following Leap’s emergence from bankruptcy protection last August; errors results from inadequate account reconciliation and review for the deferred revenues and investment income accounts; and related tax effects.
The adjustments change previously reported pre-tax losses of $200,000 for the quarter to a pre-tax income of between $600,000 and $800,000. Leap also said that its previously reported net loss of $2.6 million for the quarter would be changed to a net loss of between $1.9 million and $2.1 million.
Leap also said that the adjustments will change previously reported net income of $954.4 million that it reported for the one month ended July 31, 2004, prior to its emergence from bankruptcy protection, to net income of between $958.8 million and $959.8 million. Net income for the year up to July 31 will also be changed from $908.3 million to between $912.7 million and $913.7 million.
Leap is scheduled to release its delayed fourth-quarter and full-year 2004 results Wednesday afternoon. Leap’s stock was trading down slightly Tuesday morning at $24.10 per share.
