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UPDATE 2-Clearwire quarterly revenue beats view

Tue Nov 10, 2009 5:22pm EST

Stocks

   

* Q3 revenue $68.8 mln vs Wall St view for $66.76 mln

Stocks  |  Media  |  Telecommuncations Services

* 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.

Clearwire said it added 44,000 net new subscribers in the third quarter compared with expectations ranging from 25,000 to 53,000 from three analysts Reuters contacted.

Third-quarter customer growth included the addition of 49,000 subscribers to its high-speed wireless Clear branded WiMax service. This brought its total Clear subscriber base to 173,000 out of its total subscriber base of 555,000 at the end of the quarter.

"It's evidence of strong demand for their services in the markets they've launched," Clement said.

Clearwire shares fell 1.3 percent to $7.15 after hours after closing up 45 cents or 6.6 percent at $7.25 in the regular Nasdaq session. (Reporting by Sinead Carew; editing by Andre Grenon and Tim Dobbyn)



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