Cricket Wireless 2010 Annual Report Download - page 24

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Seasonality
Our customer activity is influenced by seasonal effects related to traditional retail selling periods and other
factors that arise in connection with our target customer base. Based on historical results, we generally expect new
sales activity to be highest in the first and fourth quarters and customer turnover, or churn, to be highest in the third
quarter and lowest in the first quarter. Sales activity and churn, however, can be strongly affected by other factors,
including changes in service plan pricing, promotional activity, device availability, economic conditions, high
unemployment (particularly in the lower-income segment of our customer base) and competitive actions, any of
which may have the ability to either offset or magnify certain seasonal effects or the relative amount of time a
market has been in operation. From time to time, we have experienced inventory shortages, most notably with
certain of our strongest-selling devices, including shortages we experienced during the second quarter of 2009 and
again in the second and third quarters of 2010. These shortages have had the effect of limiting the customer activity
that would otherwise have been expected based on seasonal trends. From time to time, we also offer programs to
help promote customer activity for our wireless services which may similarly affect seasonal trends. For example,
we utilize a program which allows existing customers to activate an additional line of voice service on a previously
activated Cricket device not currently in service. Customers accepting this offer receive a free first month of service
on the additional line of service after paying an activation fee. We believe that this kind of program and other
promotions provide important long-term benefits to us by extending the period of time over which customers use
our wireless services.
Inflation
We believe that inflation has not had a material effect on our results of operations.
Executive Officers of the Registrant
Name Age Position with the Company
S. Douglas Hutcheson .......... 54 ChiefExecutive Officer, President and Director
Walter Z. Berger .............. 55 Executive Vice President and Chief Financial Officer
Raymond J. Roman ........... 44 Executive Vice President and Chief Operating Officer
Robert A. Young ............. 60 Executive Vice President, Field Operations
William D. Ingram ............ 53 Senior Vice President, Strategy
Robert J. Irving, Jr. ........... 55 Senior Vice President, General Counsel and Secretary
Jeffrey E. Nachbor ............ 46 Senior Vice President, Financial Operations and Chief
Accounting Officer
Leonard C. Stephens ........... 54 Senior Vice President, Human Resources
S. Douglas Hutcheson has served as our chief executive officer, or CEO, president and a member of our board
of directors since February 2005. Mr. Hutcheson has held a number of positions with us since joining in September
1998 as part of our founding management team, having served as our chief financial officer, or CFO, between
August 2002 and February 2005 and again between September 2007 and June 2008, and also having served in a
number of vice president roles between September 1998 and January 2004 with responsibility for areas including
strategic planning and product and business development. From February 1995 to September 1998, Mr. Hutcheson
served as vice president, marketing in the Wireless Infrastructure Division at Qualcomm Incorporated.
Mr. Hutcheson holds a B.S. in mechanical engineering from California Polytechnic University and an M.B.A.
from the University of California, Irvine.
Walter Z. Berger has served as our executive vice president and chief financial officer since June 2008. From
2006 to 2008, Mr. Berger served in senior management roles at CBS Corporation, including as executive vice
president and chief financial officer for CBS Radio, a division of CBS Corporation. Prior to joining CBS Radio,
Mr. Berger served as executive vice president and chief financial officer and a director of Emmis Communications
from 1999 to 2005. From 1996 to 1997, Mr. Berger served as executive vice president and chief financial officer of
LG&E Energy Corporation and in 1997 was promoted to group president of the Energy Marketing Division, where
he served until 1999. From 1985 to 1996, Mr. Berger held a number of financial and operating management roles in
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