Follow us:

Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

May 9, 2007 at 10:55 AM

More on Clearwire’s Q1 results

Kirkland-based Clearwire reported its first-quarter financial results last night at 9 p.m., just giving me enough time to get something in today’s paper.

You can read the high-level results here.

Ten hours later, at 7 a.m. this morning, Clearwire executives talked with Wall Street analysts to discuss the results. That Webcast can be found here.

In general, Clearwire, which is working on building a nationwide WiMax network, sounded a little defensive based on concerns that it will have to raise more than a billion dollars more to make a significant dent in its plans.

It did a thorough job making a case for how fundraising and building a network from the ground up can be possible.

CEO Ben Wolff said the company’s plan is to be able to reach 125 million customers in the next five years, but if need be , it can scale back that plan and reach profitability sooner.

John Butler, Clearwire’s CFO, said to count on increasing expenses and losses for some time, but “they aren’t any different than any predecessor wireless carriers.”

Since the company’s inception, it has raised $2 billion in capital and was able to raise $600 million in its public offering. It has $1.5 billion in cash and short-term investments.

“We have consistently demonstrated to have access to markets, and will tap that market soon for additional funding,” Butler said.

Butler added that if the terms were not favorable, Clearwire can adjust its roll-out schedule, conserve cash and become profitable much sooner if it needed to.

Still, that argument didn’t seem to sway the stock market. In early morning trading today, the company’s stock continued to slide, decreasing 73 cents, or about 3.8 percent to $18.27 a share.

Comments | More in WiMax

COMMENTS

No personal attacks or insults, no hate speech, no profanity. Please keep the conversation civil and help us moderate this thread by reporting any abuse. See our Commenting FAQ.



The opinions expressed in reader comments are those of the author only, and do not reflect the opinions of The Seattle Times.


The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►
The Seattle Times

To keep reading, you need a subscription upgrade.

We hope you have enjoyed your complimentary access. For unlimited seattletimes.com access, please upgrade your digital subscription.

Call customer service at 1.800.542.0820 for assistance with your upgrade or questions about your subscriber status.

The Seattle Times

To keep reading, you need a subscription.

We hope you have enjoyed your complimentary access. Subscribe now for unlimited access!

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Activate Subscriber Account ►