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AT&T Wireless Revises Profit Up by $27 Million

A delay in an accounting rule change prompts the firm to amend its earnings.

November 11, 2003|From Times Wire Services

AT&T Wireless Services Inc. said Monday that it added $27 million to its third-quarter net income after accounting rule makers delayed a change in how assets should be valued.

The positive news came the same day as the company tried to control negative news: Because of a software upgrade glitch, it was struggling to activate wireless phone service for customers who signed up since Nov. 1.

The biggest publicly traded U.S. mobile-phone carrier revised its net income for the period to $156 million, or 6 cents a share, from $129 million, or 5 cents, in an earlier tally.

The company, based in Redmond, Wash., amended the profit figure after the U.S. Financial Accounting Standards Board deferred a rule change related to reporting minority holdings in certain partnerships.

AT&T Wireless had recorded a $27-million charge related to the rule, which would have required that holdings be recorded at fair value rather than book value.

The expense was reversed because the requirements were delayed, the company said.

As for the glitch in new accounts, spokesman Mark Siegel said the company was working through the backlog of customers who signed up for service on its advanced GSM network since Nov. 1. He declined to say how many customers were affected.

Shares of AT&T Wireless fell 7 cents to $6.95 on the New York Stock Exchange.

Associated Press and Bloomberg News were used in compiling this report.

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