posted a third-quarter loss as the company took a $3.5 billion writedown on the value of its network.
For its third quarter ended Sept. 30, the Overland Park, Kan., company lost $1.91 billion, or $1.32 a share. That compares with a year-ago loss of $499 million, or 35 cents a share. The latest period includes the effect of the network writedown, which comes as the telecom industry endures a brutal round of cost-cutting amid an intensifying price war.
Revenue rose to $6.92 billion from $6.74 billion a year earlier.
On a so-called adjusted basis, excluding the effect of special items, latest-quarter per-share earnings rose to 24 cents from 19 cents a year earlier. Sprint attributed the gain to double-digit customer, revenue and profit growth in its wireless segment.
The company said the writedown will boost fourth-quarter earnings by around 8 cents a share by reducing amortization and depreciation costs. Even excluding that gain, the company boosted full-year earnings and revenue guidance, saying it expects a 4%-5% top-line gain and earnings of around 85 cents a share. Sprint previously had called for a 3%-4% revenue increase and earnings of 76 cents a share.
Sprint also said it restated a number of financial statements going back to 1999 related to wireless construction capital spending. The company said the adjustments weren't material. Sprint said year-ago numbers were restated as well due to an "an adjustment related to an understatement of its long-term disability liability."
The announcement came just days after Sprint announced its latest round of
job cuts. The company said it would cut 700 more jobs this year on top of the 2,500 it has already slashed.
"Sprint continues to make strides on becoming the telecom services provider of choice, and our results in the third quarter reflect this progress," said CEO Gary Forsee. "Our steady execution has led to consistent improvements in revenue, profitability and cash generation, and we are on track to meet our net debt reduction targets. Our recent announcement to further align resources with customer demand will enable us to more fully leverage our portfolio of assets and capabilities as we increasingly distinguish Sprint as a one-stop shop for services."
Sprint's writedown matches the one taken yesterday by big telco
but is dwarfed by the one declared earlier this month by
, which pledged to reduce its balance sheet by $11.5 billion and slash its workforce by 20%.
Early Tuesday, Sprint was unchanged at $20.60.