jumped 11% on a solid fourth quarter outlook.
The San Diego flat-rate mobile phone service posted an adjusted loss of 9 cents a share excluding 55 cents a share in one-time taxes and changes to its accounting methods. Service revenue for the quarter was $354.5 million, nearly flat compared with the $350 million in the second quarter. Analysts were expecting a 22-cent loss on $396 million in sales, according to Reuters Estimates.
The news comes just five weeks after the company's stock
nose-dived after announcing a big sales shortfall. Leap also said it had to restate its financials back to 2004. That news came in the wake of an abandoned deal offer from rival
In the past two months, Leap's shares have fallen 54%.
But in an update of its accounting review late Thursday, Leap says the misbooked revenue will total about $8 million in service revenue adjustments and about $23 million in operating income over the past three years. Previously, the company said it misbooked about $20 million in service revenue and $20 million in operating income from 2004 to the second quarter of this year.
Looking ahead, however, the company expects to show improvements in key areas such as subscriber growth. In the third quarter Leap added a meager 36,500 net new users, and its monthly defection rate jumped to 5.4%.
The company now says it expects to add 70,000 to 130,000 net new subscribers, an increase over prior guidance of 40,000 to 120,000. And churn is expected to fall to about 4.6% in the fourth quarter.
Leap shares rose $3.86 to $38 in early trading on Friday.