Clearwire Reports Q4 Loss of $0.53, Seeks Funding (CLWR)
Feb 17, 2011 (SmarTrend News Watch via COMTEX) --
Clearwire (NASDAQ:CLWR) reported a Q4 loss of 53 cents per share, a penny better than the 54-cent loss analysts were expecting. Revenue totaled $180.7 million, below the Street target of $194.7 million. Average revenue per user (ARPU) was reported at $16.07.
The company said that it is seeking additional funding and may sell assets including spectrum and it currently evaluating offers. Clearwire also stated that it is looking to double its subscriber base in 2011 and ended Q4 with 4.4 million subs, adding 1.5 million during the quarter.
CEO Bill Morrow said, "In 2010, we achieved our aggressive network expansion goals, grew our subscriber base at an incredible rate and solidified our position as a leader in the 4G industry in both network reach and customer growth. The Clearwire 4G mobile broadband network now reaches 119 million people in the U.S. and covers 71 of the top U.S. markets. Our network expansion represents one of the fastest in history, and unlike some wireless operators, our 4G network is highly scalable and backed by a wealth of spectrum. With recent projections estimating global mobile data traffic will nearly double annually through 2015, we believe more than ever
that a deep spectrum position will be a requirement for long-term success in the high tonnage, video-enabled 4G world.
Morrow added, "Clearwire is also one of the fastest growing companies in the wireless industry. With fourth quarter subscriber additions in excess of 1.5 million,
we now serve over 4.4 million customers and expect continued strong subscriber
growth to more than double our total subscriber base in 2011. Despite this strong growth, our current plans and funding dictate that we remain prudent with our spending. This year, we plan to focus on improving the operating performance of our business by aggressively growing our wholesale business and reducing expenses.We remain very committed to our retail distribution model as well, and plan to prudently pace our retail growth in an effort to maximize our financial resources. We currently believe that the actions we are taking will allow our existing business to achieve positive EBITDA during 2012 and potentially become cash flow positive thereafter without the need for additional funding.Significant network expansion in the near term, however, remains contingent upon additional funding."
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