CONSHOHOCKEN, Pa.-UbiquiTel Inc. reported $60.5 million in total revenues for the third quarter, nearly double the $30.7 million the Sprint PCS affiliate posted for the same quarter last year. Net losses also increased slightly from $29.6 million to $30.5 million, though losses per share fell from 40 cents per share to 38 cents per share due to an increased common share base.
UbiquiTel said net customer additions for the quarter totaled 18,800 prior to a one-time adjustment when approximately 1,980 non-revenue-generating subscribers were written off during the quarter as part of a subscriber validation test performed during the quarter. UbiquiTel also reported 67 percent of its customer base was considered prime credit class, 20 percent was sub-prime credit class with no deposit and 13 percent was sub-prime credit class with a deposit.
Average revenue per user fell from $61 during the third quarter of 2001 to $58 this year, but it remained flat from the previous quarter.
UbiquiTel also announced it would transfer its common stock listing to the Nasdaq Small Cap Market from the Nasdaq National Market beginning Nov. 1 after failing to meet the minimum $1 per share closing bid price requirement for 30 consecutive days. The carrier said the transfer will give it until Jan. 21, 2003, to satisfy the minimum closing bid price requirement and possibly an additional 180-day grace period providing it meets other Small Cap initial listing requirements.
“The volatility in the telecommunications industry has significantly reduced the market capitalization of many companies, including UbiquiTel’s,” explained Donald Harris, chairman and chief executive officer of UbiquiTel. “This transfer enables us to retain liquidity in our common stock in a difficult capital market environment. UbiquiTel’s cash position remains strong and we do not expect the transfer to have an effect on our ability to execute our business plan.”
UbiquiTel said it currently meets all of the Nasdaq National Marker’s listing requirements except for the minimum bid price, which has traded under $1 since it closed at 96 cents per share on June 6. The carrier’s stock was down more than 22 percent in early Wednesday trading at 41 cents per share.
