InPhonic shrinks loss

Online wireless retailer InPhonic Inc. said its fourth-quarter loss narrowed on increased revenues.
The company reported revenue of $120.3 million for the quarter, up from $85.2 million for the same period in 2005. Revenues were in-line with average analyst estimates of $120.7 million. For the year, revenues were $405.7 million, up from $320.5 million for 2005. Analysts expected the company to report revenues of $405.6 million.
InPhonic’s loss from continuing operations came in at $3.4 million, down substantially from a loss of $24.8 million during the fourth quarter of 2005. The company’s full-year loss was $17.3 million, compared with a loss of $37.8 million for 2005.
“In 2006, InPhonic made substantial progress in transitioning our business by putting in place residual-based compensation agreements with most of the major wireless carriers, improving our customer service experience and expanding our industry-leading online distribution channel with high-quality partners such as Best Buy, Staples and Amazon,” said InPhonic’s chairman and CEO David Steinberg. “For 2007, we are focused on continuing the strong operational momentum of this past year while maintaining strong revenue growth, further improving operating and contribution margins and generating sustainable positive operating cash flow.”
The company said it ended 2006 with about 660,000 residual revenue subscribers.
InPhonic said it expects revenues for the first quarter to come in between $108 million and $110 million.
InPhonic’s stock was down around 5 percent on the news to $13.32 per share.