InPhonic Restates, Loses CFO

Shares jump.
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InPhonic (INPC) restated results for three quarters of 2006 and said its chief financial officer is out, effective immediately.

The Washington, D.C., online-cell phone retailer said finance chief Larry Winkler has resigned for personal reasons. Winkler had been the accounting chief during the period that the company misbooked commissions from telcos.

The company, the operator of Web-based mobile phone shop Wirefly, restated results for the first, second and third quarters of 2006. The restatements, filed Friday, cut $15.6 million from sales for the three quarters, and they widened InPhonic's losses by $15.4 million, or 42 cents a share, to bring the net loss to 82 cents a share for the period.

In its annual report filed Friday, the company said its total loss for 2006 was $63.7 million, or $1.75 a share, on $369.7 million in sales. Those numbers compare with a 2005 loss of $38.2 million, or $1.11 a share, on revenue of $320.5 million.

Meanwhile, InPhonic said No. 2 finance officer George Moratis will become chief accounting officer until a search for a CFO replacement is complete.

The newly cleaned books and departure of its CFO helped give the company's stock a push. Shares rose 40 cents to $9.16 in early trading Friday.