UPDATE 2-Clearwire quarterly revenue beats view

Tue Nov 10, 2009 10:22pm GMT
 
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* Q3 revenue $68.8 mln vs Wall St view for $66.76 mln

* Adds 44,000 net new customers

* Shares fall slightly after rising 6 pct on Nasdaq (Adds analyst's comments, subscriber numbers, outlook, updates share price)

NEW YORK, Nov 10 (Reuters) - Clearwire Corp (CLWR.O) posted third-quarter revenue that was slightly higher than Wall Street estimates, but its forecast for a heftier cash burn than expected in the current quarter disappointed some investors.

Clearwire said its full year 2009 cash spend would be at the high end of its previously announced target range of $1.5 billion to $1.9 billion, but it kept to its plan to extend its network to cover 40 million people by the end of the year.

"They haven't changed the number of markets they're going to launch this year, but the cost is a little higher than expected," said Pacific Crest analyst Steve Clement.

Clearwire, 51 percent owned by Sprint Nextel Corp (S.N), said earlier on Tuesday that it had raised $1.56 billion in new funding to help it expand its network. Other investors include Comcast (CMCSA.O), Time Warner Cable Inc (TWC.N) and Intel Corp (INTC.O). The company will use the new funding to build a network based on a high-speed wireless technology known as WiMax.

The company said on Tuesday that its net loss narrowed to $82.43 million, or 43 cents per share, from a loss of $137.6 million in the same quarter a year ago. Its loss per share was in line with Wall Street expectations, according to Thomson Reuters I/B/E/S..

Clearwire said third quarter revenue rose to $68.8 million from $60.8 million a year ago. Analysts, on average, had expected revenue of $66.76 million.  Continued...

 

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