Clearwire reports loss, cuts staff by 15% and delays rollouts

By on November 5, 2010, 8:30 AM
Clearwire has announced that it will undertake various cost-cutting measures after reporting a loss of $139 million for the third quarter of 2010. To conserve cash, the company will reduce marketing spending, delay the launch of certain products and services, and suspend development at select construction sites.

Additionally, it will dismiss a substantial number of contractors as well as 15% (about 630) of its ~4,200 employees. Clearwire believes those changes could yield a savings of between $100 and $200 million.

The 4G provider is also looking for ways to secure additional capital, including "strategic transactions" and "additional debt or equity financings and/or asset sales." Despite its loss, Clearwire reported plenty of positive results for the recent period and it remains "cautiously optimistic."

Revenue increased 114% year-over-year to $147 million as the company witnessed strong demand for its mobile broadband service, adding 1.23 million subscribers for a total of 2.84 million, up 402% on-year. Its 4G network now reaches 100 million people and by the end of 2010 it plans to cover 120 million people and have more than 4 million subscribers.

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