InPhonic Inc. / INPC

About InPhonic Inc.

1010 Wisconsin Ave. NW, Suite 600, Washington, D.C. 20007
www.inphonic.com | 202-333-0001 | Founded: 1999

Industry: Telecommunications | Category: Public Companies

InPhonic continued to struggle last year, but its executives pointed to signs that it was turning a corner.
Executives said they expected the company's bottom line to improve as they continued to change the way they generate income from sales of cellphones and service plans. Instead of capturing a one-time fee from wireless providers for each transaction, the company is shifting to longer-term agreements in which it takes a monthly cut from each phone bill. Executives said they expect that such agreements would provide a steadier, more reliable income stream. The company's number of such customers climbed 35 percent in the last three months of the year, to 660,000.
The company also tried to put behind it a high-profile lawsuit brought by the D.C. attorney general's office last year that accused InPhonic of not delivering on its mail-in rebate promises.
InPhonic denied wrongdoing but settled the suit, agreeing in February to pay the District $100,000 and make restitution with about 9,000 customers. Executives said they have cut back on the use of rebates and that the business can still be profitable without them.
The company also added two new executives last year: Andy Zeinfeld, who served as Radio Shack's chief retail services officer, was named InPhonic's president for e-commerce. Brian Curran, a vice president at Best Buy, was named chief operating officer. InPhonic's spokesman said the executives' experience will help the company better manage its growth and customer service.
In April, InPhonic said it planned to restate results for two quarters and the full fiscal year of 2006 after it incorrectly recorded revenue from wireless carriers.

2006 Financial Data