Clearwire's mixed results highlight big job ahead
For a company that seemed like it was on the ropes just a little over a month ago, Clearwire seems like it is doing everything it can to fight back, whether that involves seeking more financing at a time when the perceived value of its spectrum holdings has soared, or releasing quarterly results early to highlight growing revenue.
Clearwire did both of those things this week, as it sought to raise about $300 million through a new debt issue, money that presumably will be used for its LTE upgrade, though Clearwire did not outline specific plans for the money. The company also reported that its fourth-quarter revenues would more than double from about $180 million to about $362 million. Usage of the company's WiMAX network also grew.
The financial results, however, are not completely rosy, as the company reported that new customer additions slowed during the quarter down from almost 1.9 million in the third quarter to about 900,000 last quarter.
It is tempting to start looking at Clearwire as an overnight revival story, but it should not be forgotten that the company was pulled back from the brink by Sprint, to whom much of its financial health and near term success is still tied.
- check out this CNET post