Reston-based Sprint Nextel posted a $211 million loss for its first quarter of 2007, the company announced Wednesday.
The loss compares with profits of $164 million for the same period in 2006 and was the result of a number of subscribers leaving Sprint for other providers.
Sprint lost 220,000 monthly subscribers who were considered more loyal customers.
During a conference call with investors Wednesday, CEO Gary Forsee said subscriber losses were partially driven by lingering perceptions about network issues. The company has made improvements to its platform to improve reception in metropolitan areas, which it has begun to advertise and believes will drive subscriber growth.
Sprint’s revenue for the quarter was $10.10 billion, up from $10.07 billion during the same period last year.
In a note to investors, Tom Watts of New York-based Cowen & Co. noted higher spending meant the company’s earnings were lower than analysts had predicted and said Sprint’s Nextel division remains a problem for the company in terms of subscriber loss.
It was a tough quarter for Sprint, which also lost its stake in the $20 billion Networx Universal contract awarded by the U.S. General Services Administration, for which it was an incumbent contractor.
“We have had a long-standing relationship with many federal agencies, and we expect this to continue,” said Forsee, noting the loss would not alter its short-term or long-term prospects for its landline business.
