May 5, 2011 11:20 am EDT

Clearwire posts Q1 loss amid record subscribers, decides not to sell spectrum after all

You know you're having a wacky quarter when it involves a resigning CEO, lawsuits, and rumors that one of your wholesale partners is courting your potential replacement. But can you still come out on top? Clearwire answered this question during yesterday's Q1 2011 earnings report to investors, and the answer is just as intriguing as the quarter itself. Though it posted a substantial revenue of $242 million, the company was also inflicted with a net loss of $227 million. Don't worry, it gets crazier -- Clearwire experienced record subscriber growth, seeing an increase of 533 percent year-over-year from Q1 2010. Sounds like a contradiction, right? A few factors led to the loss, such as higher costs from network expansion and writing off the "abandonment of projects that no longer fit within management's strategic network plans." A loss is a loss, but at least the future looks brighter; Clearwire predicts it will end the year with nearly a million more subs than originally forecasted (9.5 million, up from 8.8). Saving the best news for last, CEO John Stanton announced his company is no longer feeling the pressure to sell off some of its spectrum, primarily due to its recent $1 billion deal with Sprint. The deal will add enough cash flow to sustain network operations for the next year, so Clearwire just needs to make sure it uses some of the extra cash to buy us all something pretty. The full press release can be found after the break.

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Clearwire posts Q1 loss amid record subscribers, decides not to sell spectrum after all originally appeared on Engadget on Thu, 05 May 2011 07:20:00 EDT. Please see our terms for use of feeds.

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