WASHINGTON—Online wireless retailer InPhonic Inc. said its third-quarter net loss widened despite an increase in revenues. The company also announced it reached a settlement “in principle” with the District of Columbia Attorney General over a consumer-protection lawsuit that revolved around InPhonic’s use of mail-in rebates. InPhonic did not provide details of the settlement.
Investors roared their approval of the news, sending InPhonic’s stock up more than 22 percent to $11.07 per share.
InPhonic’s revenues for the quarter were $102.2 million, up from $92 million during the third quarter last year. Revenues were in line with analyst estimates of $101.1 million.
The company’s net loss for the quarter was $4.9 million, a slightly larger loss than the company’s net loss of $4.4 million reported during the same period last year.
“We are pleased with our progress in transitioning an increasing amount of InPhonic’s business to a residual revenue model characterized by a predictable, high margin and transparent recurring revenue stream,” said David Steinberg, the company’s chief executive officer. “Efforts to improve operational efficiency and our disciplined focus on sustainable growth delivered significant improvements in operating cash flow, solid revenue growth and continued margin expansion in the quarter.”
For the fourth quarter, InPhonic expects to report revenues of between $115 million and $125 million, and for the year it expects revenues to range from $400 million to $410 million. Analysts expect the company to log revenues of $118 million for the fourth quarter and $402.8 million for the year.
