Clearwire Reports Q2

Reports record pro forma Q2 revenue of $293.7M

August 3, 2011

2 Min Read

KIRKLAND, Wash. -- Clearwire Corporation (Nasdaq:CLWR), a leading provider of 4G wireless broadband services in the U.S., today reported its financial and operating results for the second quarter 2011.

"This quarter we continued to build on our success with rapid subscriber growth and improving financial performance," said John Stanton, Chairman and Interim Chief Executive Officer of Clearwire. "Looking ahead, we will continue to seek funding to fuel our growth with the belief that our 4G network, growing customer base, unmatched and unencumbered spectrum, and notable wholesale partners put us in a uniquely advantageous position — one that we intend to maximize."

"During the quarter we made significant progress toward our objective of achieving positive adjusted EBITDA in 2012 as a result of dramatic growth in revenue coupled with continued reductions in our operating costs," added Erik Prusch, Clearwire's Chief Operating Officer.

Clearwire ended the second quarter 2011 with approximately 7.65 million total subscribers, up 365% from 1.64 million subscribers in the second quarter 2010. The subscriber base consists of 1.29 million retail subscribers and 6.36 million wholesale subscribers. During the second quarter 2011, Clearwire added 1.54 million total net new subscribers, comprised of 39,000 retail and 1.50 million wholesale net new subscribers. Clearwire's wholesale subscribers consist primarily of users of 3G/4G smartphone devices.

Second quarter 2011 aggregate network usage by wholesale customers increased 42% as compared to first quarter 2011, driven primarily by growth in aggregate smartphone usage, which increased 74% over the same period.

Second quarter 2011 reported revenue was $322.6 million. Consolidated pro forma revenue for the second quarter 2011 was $293.7 million, a 151% increase over second quarter 2010 revenue of $117.0 million. In the second quarter 2011, retail revenue and other revenue was $191.1 million and retail average revenue per user (ARPU) was a record $47.59. Pro forma wholesale revenue was $102.6 million in the second quarter 2011, or $6.18 in pro forma wholesale ARPU.

Consolidated pro forma revenue and pro forma wholesale revenue exclude approximately $16.1 million of revenue related to wholesale services provided by Clearwire to Sprint in the first quarter 2011, and approximately $12.8 million of a $28.2 million settlement amount from Sprint which relates to wholesale services provided prior to 2011. Clearwire's management believes it is useful to present pro forma revenue and pro forma net loss from continuing operations attributable to Clearwire Corporation in evaluating Clearwire's financial performance for the second quarter because they more accurately reflect the revenue-generating activity during the period.

Clearwire LLC (Nasdaq: CLWR)

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