Clearwire Reports Fourth Quarter and Full Year 2012 Results

Clearwire Reports Fourth Quarter and Full Year 2012 Results

  *Full Year Revenues of $1.26 Billion, Up 1%; Full Year Retail Revenues Up
    5% to $795.6 Million
  *Total Ending Subscribers of 9.6 Million, Down 8% Year Over Year From 10.4
    Million
  *2012 Adjusted EBITDA Loss Improved by $157.0 Million Year Over Year to
    $(156.9) Million

BELLEVUE, Wash., Feb. 12, 2013 (GLOBE NEWSWIRE) -- Clearwire Corporation
(Nasdaq:CLWR), a leading provider of 4G wireless broadband services in the
U.S., today reported its financial and operating results for fourth quarter
and full year 2012.

"In fourth quarter 2012, we have once again delivered solid results resulting
in top-line growth and 50% year over year improvement in full year Adjusted
EBITDA loss in 2012," said Erik Prusch, President and CEO of Clearwire. "Our
full year 2012 results demonstrate our continued focus on reducing costs,
managing revenues and liquidity, and providing exceptional service to our
customers during a transition period as we build an LTE network equipped to
provide wireless consumers the speeds and capacity they desire."

Total revenue for full year 2012 increased 1% year over year to $1.26 billion
driven by retail revenues which increased 5% to $795.6 million in 2012 from
$758.3 million in 2011. Fourth quarter 2012 total revenue declined 14% year
over year to $311.2 million primarily due to the expected year over year
decline in wholesale revenue. Fourth quarter wholesale revenue of $116.6
million, was relatively flat compared to third quarter 2012 wholesale revenue
of $116.5 million, and down 29% year over year, reflecting the fixed wholesale
WiMAX revenue terms of the 4G MVNO Agreement with Sprint which took effect in
2012 and will continue through 2013. Retail revenue and other revenue
decreased 2% year over year to $194.7 million in fourth quarter 2012. Retail
average revenue per user (ARPU) was $44.10 representing a decrease of $2.59
year over year compared to $46.69 in fourth quarter 2011 primarily due to
lower equipment lease and activation revenue under the no-contract offering
which was fully launched in 2012.

Clearwire ended fourth quarter 2012 with approximately 9.6 million total
subscribers, down 8% from 10.4 million subscribers at the end of fourth
quarter 2011. The subscriber base consists of approximately 1.4 million retail
subscribers and 8.2 million wholesale subscribers, reflecting 9,000 retail net
subscriber additions and 915,000 wholesale net subscriber losses during fourth
quarter 2012. The decline in wholesale subscribers, which consist primarily of
Sprint 3G/4G smartphone customers, is primarily due to the discontinuation of
postpaid WiMAX offerings by Sprint.

Retail cost per gross addition (CPGA) was $155 in fourth quarter 2012 compared
to $259 in fourth quarter 2011. The year over year improvement is primarily
due to lower retail selling expenses associated with our no-contract offering
and higher gross adds, partially offset by increased equipment subsidies.
Retail churn was 5.0% in fourth quarter 2012, up from 3.9% in fourth quarter
2011. The increase in churn is primarily due to an increase in subscribers on
no-contract plans, which were fully launched in first quarter 2012.

Full year 2012 Adjusted EBITDA improved by $157.0 million year over year to a
loss of $(156.9) million. Adjusted EBITDA in fourth quarter 2012 was a loss of
$(46.0) million, representing a $68.5 million decline compared to fourth
quarter 2011 Adjusted EBITDA of $22.5 million. The decrease is primarily due
to lower revenue in fourth quarter 2012 compared to the prior year period.

Cash, cash equivalents and investments (invested primarily in U.S. Treasury
securities) as of December 31, 2012 was approximately $868.6 million, a
sequential decrease of $315.1 million from September 30, 2012. The sequential
decrease primarily reflects the fourth quarter payment of our semi-annual
interest payment and cash payments for capital expenditures and operating
expenses, which exceeded the cash inflows during the period (primarily from
Sprint and our retail business). As compared to December 31, 2011, cash, cash
equivalents and investments decreased by $239.0 million.

Fourth quarter 2012 capex of $102 million related primarily to the deployment
of Clearwire's LTE network as well as ongoing maintenance of our mobile WiMAX
network, and increased $68 million and $79 million, respectively, as compared
to $34 million in third quarter 2012 and $23 million of capex in fourth
quarter 2011. Both the year over year and sequential increases in capex are
primarily related to increased network investments associated with our ongoing
LTE deployment efforts.

At the end of fourth quarter 2012, Clearwire operated networks in the U.S.
covering areas where approximately 137 million people reside, including
approximately 135 million people in markets where we provide 4G services,
slightly higher than the prior year period.

Results of Operations

Cost of goods and services and network costs (COGS) in fourth quarter 2012
decreased 29% to $208.3 million compared to $294.0 million in fourth quarter
2011. These amounts include non-cash charges for network equipment reserves
and other write-downs of $2.3 million and $6.4 million in fourth quarters 2012
and 2011, respectively, and other non-cash network-related expenses of $22.9
million and $115.4 million in fourth quarters 2012 and 2011, respectively. The
year over year decrease in other non-cash network related expenses is
primarily due to a higher provision for unused tower-related leases and other
network agreements in fourth quarter 2011. Excluding non-cash expenses, COGS
increased 6% year over year primarily due to higher tower- and network-related
expenses in conjunction with our ongoing LTE build, as well as an increase in
customer premise equipment sales associated with our no contract retail model,
which required customers to purchase rather than lease devices beginning in
2012.

Selling, general and administrative (SG&A) expense in fourth quarter 2012
increased 8% to $138.5 million compared to $128.5 million in fourth quarter
2011. The increase is primarily attributable to professional fees related to
the proposed merger with Sprint and employee-related expenses including stock
compensation.

Fourth quarter 2012 reported net loss from continuing operations attributable
to Clearwire was $(195.0) million, or $(0.28) per basic share compared to
$(236.0) million, or $(0.81) per basic share, respectively in the prior year
period. Including the effects of discontinued operations, fourth quarter 2012
reported net loss attributable to Clearwire was $(187.2) million, or $(0.27)
per basic share, compared to $(236.8) million or $(0.81), respectively in the
prior year period.

CLEARWIRE CORPORATION
SUMMARY FINANCIAL AND OPERATING DATA FROM CONTINUING OPERATIONS
(In thousands)
(Unaudited)
                                                             
                     Three months ended
                     December 31,  September 30,  June 30, 2012 December 31,
                      2012          2012                         2011
                                                             
REVENUES:                                                     
Retail revenue        $194,451    $197,215     $199,156    $197,640
Wholesale revenue     116,590      116,498       117,560      164,082
Other revenue         200          169           216          148
Total revenues        311,241      313,882       316,932      361,870
OPERATING EXPENSES:                                           
Cost of goods and
services and network
costs (exclusive of   208,322      211,540       224,426      293,999
items shown
separately below)
Selling, general and
administrative        138,489      139,365       137,693      128,502
expense
Depreciation and      194,873      210,781       184,566      169,962
amortization
Spectrum lease        83,387       82,513        81,190       79,556
expense
Loss from abandonment
of network and other  (1,099)      2,588         317          123,000
assets
Total operating       623,972      646,787       628,192      795,019
expenses
OPERATING LOSS        (312,731)    (332,905)     (311,260)    (433,149)
                                                             
LESS NON-CASH ITEMS:                                          
Non-cash expenses     70,041       67,310        77,893       156,308
Non-cash write-downs  1,805        16,551        14,369       129,358
Depreciation and      194,873      210,781       184,566      169,962
amortization
Total non-cash items  266,719      294,642       276,828      455,628
Adjusted EBITDA       $(46,012)   $(38,263)    $(34,432)   $22,479
Adjusted EBITDA       (15)%         (12)%          (11)%         6 %
margin
                                                             
KEY OPERATING METRICS (k for                                   
'000's, MM for '000,000's)
Total net subscriber  (906)k      (468)k       (41)k       873k
additions
Wholesale             (915)k      (489)k       (34)k       904k
Retail                9k          21k          (8)k        (31)k
Total subscribers     9,581k      10,488k      10,957k     10,414k
Wholesale (1)         8,220k      9,136k       9,625k      9,122k
Retail                1,361k      1,353k       1,333k      1,292k
Retail ARPU           $44.10        $45.06         $46.12        $46.69
Churn                                                         
Wholesale             7.3 %         5.4 %          3.6 %         2.9 %
Retail                5.0 %         5.1 %          4.4 %         3.9 %
Retail CPGA           $155          $191           $226          $259
Capital expenditures  $102MM      $34MM        $24MM       $23MM
Domestic 4G covered   135MM       133MM        134MM       132MM
POPS
Cash, cash
equivalents and       $869MM      $1,184MM     $1,210MM    $1,108MM
investments
                                                             
(1) Includes non-launched markets. Based on the terms of the November 2011
Amended MVNO Agreement between Clearwire and Sprint, which provides for
unlimited WiMAX service to Sprint retail customers in exchange for fixed
payments in 2012 and 2013, fluctuations in the wholesale subscriber base will
not necessarily correlate to wholesale revenue.


CLEARWIRE CORPORATION
SUMMARY FINANCIAL AND OPERATING DATA FROM CONTINUING OPERATIONS
(In thousands)
(Unaudited)
                                        Year Ended
                                        December 31,          December 31,
                                         2012                  2011
                                                             
REVENUES:                                                     
Retail revenue                           $795,632            $758,254
Wholesale revenue                        468,469              493,661
Other revenue                            593                  1,551
Total revenues                           1,264,694            1,253,466
OPERATING EXPENSES:                                           
Cost of goods and services and network
costs (exclusive of items shown          908,078              1,249,966
separately below)
Selling, general and administrative      558,202              698,067
expense
Depreciation and amortization            768,193              687,636
Spectrum lease expense                   326,798              308,693
Loss from abandonment of network and     82,206               700,341
other assets
Total operating expenses                 2,643,477            3,644,703
OPERATING LOSS                           (1,378,783)          (2,391,237)
                                                             
LESS NON-CASH ITEMS:                                          
Non-cash expenses                        281,908              423,260
Non-cash write-downs                     171,781              966,441
Depreciation and amortization            768,193              687,636
Total non-cash items                     1,221,882            2,077,337
Adjusted EBITDA                          $(156,901)          $(313,900)
Adjusted EBITDA margin                   (12)%                 (25)%
                                                             
KEY OPERATING METRICS (k for '000's, MM for '000,000's)        
Total net subscriber additions           (830)k              6,069k
Wholesale                                (901)k              5,876k
Retail                                   71k                 193k
Total subscribers                        9,581k              10,414k
Wholesale (1)                            8,220k              9,122k
Retail                                   1,361k              1,292k
Retail ARPU                              $45.51                $47.04
Churn                                                         
Wholesale                                4.8 %                 1.9 %
Retail                                   4.6 %                 3.8 %
Retail CPGA                              $201                  $292
Capital expenditures                     $182MM              $226MM
Domestic 4G covered POPS                 135MM               132MM
Cash, cash equivalents and investments   $869MM              $1,108MM
                                                             
(1) Includes non-launched markets. Based on the terms of the November 2011
Amended MVNO Agreement between Clearwire and Sprint, which provides for
unlimited WiMAX service to Sprint retail customers in exchange for fixed
payments in 2012 and 2013, fluctuations in the wholesale subscriber base will
not necessarily correlate to wholesale revenue.

Management Webcast

Clearwire executives will host a conference call and simultaneous webcast to
discuss the company's fourth quarter and full year 2012 financial results at
4:30 p.m. Eastern Time today. A live broadcast of the conference call will be
available online on the company's investor relations website located at
http://investors.clearwire.com. Interested parties can access the conference
call by dialing 1-877-392-9886, or from outside the U.S. by dialing
1-707-287-9329, at least five minutes prior to the start time. A replay of the
call will be available beginning at approximately 7:30 p.m. Eastern Time on
February 12, through Thursday, February 19, by calling 1-855-859-2056, or from
outside the U.S. by dialing 1-404-537-3406. The passcode for the replay is
90062075.

About Clearwire

Clearwire Corporation (Nasdaq:CLWR), through its operating subsidiaries, is a
leading provider of 4G wireless broadband services offering services in areas
of the U.S. where more than 130 million people live. The company holds the
deepest portfolio of wireless spectrum available for data services in the
U.S.Clearwire serves retail customers through its own CLEAR^® brand as well
as through wholesale relationships with some of the leading companies in the
retail, technology and telecommunications industries, including Sprint and
NetZero.The company is constructing a next-generation 4G LTE Advanced-ready
network to address the capacity needs of the market,and is also working
closely with the Global TDD-LTE Initiative to further the TDD-LTE ecosystem.
Clearwire is headquartered in Bellevue, Wash. Additional information is
available at http://www.clearwire.com.

The Clearwire Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=8493

Forward-Looking Statements

This release, and other written and oral statements made by Clearwire from
time to time, contain forward-looking statements which are based on
management's current expectations and beliefs, as well as on a number of
assumptions concerning future events made with information that is currently
available. Forward-looking statements may include, without limitation,
management's expectations regarding future financial and operating performance
and financial condition; proposed transactions; network development and market
launch plans; strategic plans and objectives; industry conditions; the
strength of the balance sheet; and liquidity and financing needs. The words
"will," "would," "may," "should," "estimate," "project," "forecast," "intend,"
"expect," "believe," "target," "designed," "plan" and similar expressions are
intended to identify forward-looking statements. Readers are cautioned not to
put undue reliance on such forward-looking statements, which are not a
guarantee of performance and are subject to a number of uncertainties and
other factors, many of which are outside of Clearwire's control, which could
cause actual results to differ materially and adversely from such statements.
Some factors that could cause actual results to differ are:

  *Our proposed merger with Sprint is subject to certain regulatory
    conditions that may not be satisfied on a timely basis, or at all, and is
    also conditioned on the consummation of the Sprint-Softbank transaction.
    If the merger with Sprint fails because it is not adopted by our
    shareholders, then under certain circumstances Sprint may gain significant
    control over us by increasing its majority stake in us pursuant to the
    terms of an agreement with other shareholders. Additionally, failure to
    complete the proposed merger could negatively impact our business and the
    market price of our Class A Common Stock, and substantial doubt may arise
    regarding our ability to continue as a going concern.
  *We have a history of operating losses and we expect to continue to realize
    significant net losses for the foreseeable future.
  *Our business has become increasingly dependent on our wholesale partners,
    and Sprint in particular. Additionally, our current business plans depend
    on our ability to attract new wholesale partners with substantial
    requirements for additional data capacity, which is subject to a number of
    risks and uncertainties. If we do not receive the amount of revenues we
    expect from existing wholesale partners or if we are unable to enter into
    new agreements with additional wholesale partners for significant new
    wholesale commitments in a timely manner, our business prospects, results
    of operations and financial condition could be adversely affected, or we
    could be forced to consider all available alternatives, including
    financial restructuring.
  *Sprint owns a majority of our common shares, is our largest shareholder,
    and may have, or may develop in the future, interests that may diverge
    from other stockholders.
  *If the proposed merger with Sprint fails to close for any reason, we
    believe that we will require substantial additional capital to fund our
    business beyond the next twelve months and to further develop our network;
    such capital may not be available on acceptable terms or at all. If the
    merger fails to close and the funding under our Note Purchase Agreement
    with Sprint was no longer available, we would have to significantly
    curtail our LTE network build plan to conserve cash and meet our
    obligations during 2013. Additionally, if the proposed merger with Sprint
    fails to close and we are unable to obtain sufficient additional capital,
    or we fail to generate sufficient revenue from our businesses to meet our
    ongoing obligations beyond the next twelve months, our business prospects,
    financial condition and results of operations will likely be materially
    and adversely affected, and we will be forced to consider all available
    alternatives, including financial restructuring.
  *We are in the early stages of deploying LTE on our wireless broadband
    network, alongside mobile WiMAX, to remain competitive and to generate
    sufficient revenues for our business; we will incur significant costs to
    deploy such technology.Additionally, LTE technology, or other alternative
    technologies that we may consider, may not perform as we expect on our
    network and deploying such technologies would result in additional risks
    to the company, including uncertainty regarding our ability to
    successfully add a new technology to our current network and to operate
    dual technology networks without disruptions to customer service, as well
    as our ability to generate new wholesale customers for the new network.
  *We currently depend on our commercial partners to develop and deliver the
    equipment for our legacy and mobile WiMAX networks, and are dependent on
    commercial partners to deliver equipment and devices for our planned LTE
    network as well.
  *Many of our competitors for our retail business are better established and
    have significantly greater resources, and may subsidize their competitive
    offerings with other products and services.
  *Our substantial indebtedness and restrictive debt covenants could limit
    our financing options and liquidity position and may limit our ability to
    grow our business. Further, unless we are able to secure the required
    shareholder approvals to increase the number of authorized shares under
    our Certificate of Incorporation, we may not have enough authorized, but
    unissued shares available to raise sufficient additional capital through
    an equity financing.
  *Future sales of large blocks of our common stock may adversely impact our
    stock price.

For a more detailed description of the factors that could cause such a
difference, please refer to Clearwire's filings with the Securities and
Exchange Commission, including the information under the heading "Risk
Factors" in our Annual Report on Form 10-K filed on February 16, 2012, and
subsequent SEC filings. Clearwire assumes no obligation to update or
supplement such forward-looking statements.

CLEARWIRE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
(Unaudited)
                                                           
                                          December 31, 2012 December 31, 2011
ASSETS                                                      
Current assets:                                             
Cash and cash equivalents                  $193,445        $891,929
Short-term investments                     675,112          215,655
Restricted cash                            1,653            1,000
Accounts receivable, net of allowance of   22,769           83,660
$3,145 and $5,542
Inventory                                  10,940           23,832
Prepaids and other assets                  83,769           71,083
Total current assets                       987,688          1,287,159
Property, plant and equipment, net         2,259,004        3,014,277
Restricted cash                            3,709            7,619
Spectrum licenses, net                     4,249,621        4,298,254
Other intangible assets, net               24,660           40,850
Other assets                               141,107          157,797
Assets of discontinued operations          —                36,696
Total assets                               $7,665,789      $8,842,652
                                                           
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Current liabilities:                                        
Accounts payable and accrued expenses      $177,855        $157,172
Other current liabilities                  227,610          122,756
Total current liabilities                  405,465          279,928
Long-term debt, net                        4,271,357        4,019,605
Deferred tax liabilities, net              143,992          152,182
Other long-term liabilities                963,353          719,703
Liabilities of discontinued operations     —                25,196
Total liabilities                          5,784,167        5,196,614
Commitments and contingencies                              
Stockholders' equity:                                       
ClassA common stock, par value $0.0001,
2,000,000 shares authorized; 691,315 and   69               45
452,215shares outstanding
ClassB common stock, par value $0.0001,
1,400,000 shares authorized; 773,733 and   77               83
839,703shares outstanding
Additional paid-in capital                 3,158,244        2,714,634
Accumulated other comprehensive (loss)     (6)              2,793
income
Accumulated deficit                        (2,346,393)      (1,617,826)
Total Clearwire Corporation stockholders'  811,991          1,099,729
equity
Non-controlling interests                  1,069,631        2,546,309
Total stockholders' equity                 1,881,622        3,646,038
Total liabilities and stockholders' equity $7,665,789      $8,842,652



CLEARWIRE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

                                              Three Months Ended December 31,
                                              2012            2011
                                                             
Revenues                                       $311,241      $361,870
Operating expenses:                                           
Cost of goods and services and network costs   208,322        293,999
(exclusive of items shown separately below)
Selling, general and administrative expense    138,489        128,502
Depreciation and amortization                  194,873        169,962
Spectrum lease expense                         83,387         79,556
Loss from abandonment of network and other     (1,099)        123,000
assets
Total operating expenses                       623,972        795,019
Operating loss                                 (312,731)      (433,149)
Other income (expense):                                       
Interest income                                543            272
Interest expense                               (139,077)      (128,859)
Loss on derivative instruments                 (3,539)        (2,919)
Other income (expense), net                    1,261          (285)
Total other expense, net                       (140,812)      (131,791)
Loss from continuing operations before income  (453,543)      (564,940)
taxes
Income tax benefit (provision)                 22,261         (78,406)
Net loss from continuing operations            (431,282)      (643,346)
Less: non-controlling interests in net loss
from continuing operations of consolidated     236,297        407,348
subsidiaries
Net loss from continuing operations            (194,985)      (235,998)
attributable to Clearwire Corporation
Net loss from discontinued operations
attributable to Clearwire Corporation, net of  7,831          (851)
tax
Net loss attributable to Clearwire Corporation $(187,154)    $(236,849)
                                                             
Net loss from continuing operations attributable to Clearwire Corporation per
Class A common share:
Basic                                          $(0.28)       $(0.81)
Diluted                                        $(0.30)       $(0.81)
                                                             
Net loss attributable to Clearwire Corporation per Class A     
common share:
Basic                                          $(0.27)       $(0.81)
Diluted                                        $(0.29)       $(0.81)
                                                             
Weighted average Class A common shares                        
outstanding:
Basic                                          689,688        291,634
Diluted                                        1,464,987      291,634


CLEARWIRE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
                                                                
                                                    Year Ended December 31,
                                                    2012         2011
                                                                
Revenues                                             $1,264,694 $1,253,466
Operating expenses:                                              
Cost of goods and services and network costs         908,078     1,249,966
(exclusive of items shown separately below)
Selling, general and administrative expense          558,202     698,067
Depreciation and amortization                        768,193     687,636
Spectrum lease expense                               326,798     308,693
Loss from abandonment of network and other assets    82,206      700,341
Total operating expenses                             2,643,477   3,644,703
Operating loss                                       (1,378,783) (2,391,237)
Other income (expense):                                          
Interest income                                      1,895       2,335
Interest expense                                     (553,459)   (505,992)
Gain on derivative instruments                       1,356       145,308
Other income (expense), net                          (12,153)    681
Total other expense, net                             (562,361)   (357,668)
Loss from continuing operations before income taxes  (1,941,144) (2,748,905)
Income tax benefit (provision)                       197,399     (106,828)
Net loss from continuing operations                  (1,743,745) (2,855,733)
Less: non-controlling interests in net loss from     1,182,183   2,158,831
continuing operations of consolidated subsidiaries
Net loss from continuing operations attributable to  (561,562)   (696,902)
Clearwire Corporation
Net loss from discontinued operations attributable   (167,005)   (20,431)
to Clearwire Corporation, net of tax
Net loss attributable to Clearwire Corporation       $(728,567) $(717,333)
                                                                
Net loss from continuing operations attributable to Clearwire Corporation per
Class A common share:
Basic                                                $(1.01)    $(2.70)
Diluted                                              $(1.27)    $(2.99)
                                                                
Net loss attributable to Clearwire Corporation per Class A common 
share:
Basic                                                $(1.31)    $(2.78)
Diluted                                              $(1.39)    $(3.07)
                                                                
Weighted average Class A common shares outstanding:              
Basic                                                554,015     257,967
Diluted                                              1,398,603   965,099



CLEARWIRE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
                                                Year Ended December 31,
                                                2012           2011
Cash flows from operating activities:                          
Net loss from continuing operations              $(1,743,745) $(2,855,733)
Adjustments to reconcile net loss to net cash                  
used in operating activities:
Deferred income taxes                            (199,199)     105,308
Non-cash gain on derivative instruments          (1,356)       (145,308)
Accretion of discount on debt                    41,386        40,216
Depreciation and amortization                    768,193       687,636
Amortization of spectrum leases                  54,328        53,674
Non-cash rent expense                            197,169       342,962
Loss on property, plant and equipment            171,780       966,441
Other operating activities                       42,740        27,745
Changes in assets and liabilities:                             
Inventory                                        11,200        15,697
Accounts receivable                              50,401        (54,212)
Prepaids and other assets                        326           22,447
Prepaid spectrum licenses                        1,904         (4,360)
Deferred revenue                                 170,455       16,497
Accounts payable and other liabilities           (17,090)      (152,180)
Net cash used in operating activities of         (451,508)     (933,170)
continuing operations
Net cash provided by (used in) operating         (3,000)       2,381
activities of discontinued operations
Net cash used in operating activities            (454,508)     (930,789)
Cash flows from investing activities:                          
Capital expenditures                             (112,997)     (405,655)
Purchases of available-for-sale investments      (1,797,787)   (957,883)
Disposition of available-for-sale investments    1,339,078     1,255,176
Other investing activities                       (655)         20,229
Net cash used in investing activities of         (572,361)     (88,133)
continuing operations
Net cash provided by (used in) investing         1,185         (3,886)
activities of discontinued operations
Net cash used in investing activities            (571,176)     (92,019)
Cash flows from financing activities:                          
Principal payments on long-term debt             (26,985)      (29,957)
Proceeds from issuance of long-term debt         300,000       —
Debt financing fees                              (6,205)       (1,159)
Equity investment by strategic investors         8             331,400
Proceeds from issuance of common stock           58,460        387,279
Net cash provided by financing activities of     325,278       687,563
continuing operations
Net cash provided by financing activities of     —             —
discontinued operations
Net cash provided by financing activities        325,278       687,563
Effect of foreign currency exchange rates on     107           (4,573)
cash and cash equivalents
Net decrease in cash and cash equivalents        (700,299)     (339,818)
Cash and cash equivalents:                                     
Beginning of period                              893,744       1,233,562
End of period                                    193,445       893,744
Less: cash and cash equivalents of discontinued  —             1,815
operations at end of period
Cash and cash equivalents of continuing          $193,445     $891,929
operations at end of period
                                                              

  Definitions of Terms and Reconciliations of Non-GAAP Financial Measures to
          Unaudited Condensed Consolidated Statements of Operations

The company utilizes certain non-GAAP financial measures which are widely used
in the telecommunications industry and are not calculated based on accounting
principles generally accepted in the United States of America (GAAP). Other
companies may calculate these measures differently.

(1) Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is
defined as consolidated operating loss excluding depreciation and amortization
expenses, non-cash expenses related to operating leases (primarily towers,
spectrum leases and buildings), stock-based compensation expense, loss from
abandonment of network and other assets, charges for differences between
recorded amounts and the results of physical counts, and charges for excessive
and obsolete network equipment and CPE inventory. A reconciliation of
operating loss to Adjusted EBITDA is as follows: 

                        Three months ended
                        (Unaudited)
(in thousands)           December 31, September 30, June 30, 2012 December 31,
                         2012         2012                        2011
Operating loss           $(312,731) $(332,905)  $(311,260)  $(433,149)
                                                              
Non-cash expenses:                                             
Spectrum lease expense   36,260      39,833       32,341       37,228
Building and network     25,256      18,741       38,468       113,612
related expenses*
Stock compensation and   8,525       8,736        7,084        5,468
other*
Non-cash expenses        70,041      67,310       77,893       156,308
                                                              
Non-cash write-downs:                                          
Loss from abandonment of (1,099)     2,588        317          123,000
network and other assets
Network equipment
reserves and other       2,904       13,963       14,052       6,358
write-downs*
Non-cash write-downs     1,805       16,551       14,369       129,358
                                                              
Depreciation and         194,873     210,781      184,566      169,962
amortization
                                                              
Adjusted EBITDA          $(46,012)  $(38,263)   $(34,432)   $22,479
                                                              
*Amounts included in COGS and SG&A.                             

                                                
                                                Year ended
                                                (Unaudited)
(in thousands)                                  December 31,   December 31,
                                                 2012           2011
Operating loss                                   $(1,378,783) $(2,391,237)
                                                              
Non-cash expenses:                                             
Spectrum lease expense                           144,849       139,340
Building and network related expenses*           106,648       257,296
Stock compensation and other*                    30,411        26,624
Non-cash expenses                                281,908       423,260
                                                              
Non-cash write-downs:                                          
Loss from abandonment of network and other       82,206        700,341
assets
Network equipment reserves and other             89,575        266,100
write-downs*
Non-cash write-downs                             171,781       966,441
                                                              
Depreciation and amortization                    768,193       687,636
                                                              
Adjusted EBITDA                                  $(156,901)   $(313,900)
                                                              
*Amounts included in COGS and SG&A.                             

In a capital-intensive industry, management believes Adjusted EBITDA to be a
meaningful measure of the company's operating performance. The company
provides this non-GAAP measure as a supplemental performance measure because
management believes it facilitates comparisons of the company's operating
performance from period to period and comparisons of the company's operating
performance to that of other companies by backing out potential differences
caused by non-cash expenses related to long-term leases, share-based
compensation,non-cash write-downs and depreciation and amortization. Because
this non-GAAP measure facilitates internal comparisons of the company's
historical operating performance, management also uses this non-GAAP measure
for business planning purposes and in measuring the company's performance
relative to that of its competitors. In addition, Clearwire believes that
Adjusted EBITDA and similar measures are widely used by investors, financial
analysts and credit rating agencies as a measure of the company's financial
performance over time and to compare the company's financial performance with
that of other companies in the industry.

(2) Retail ARPU (Average Revenue Per User) is total revenue less wholesale
revenue, the revenue generated from the sales of devices, shipping revenue,
and other revenue; divided by the weighted average number of retail
subscribers in the period, divided by the number of months in the period. 

Management uses retail ARPU to identify average revenue per customer, to track
changes in average retail customer revenues over time, to help evaluate how
changes in the business, including changes in the company's service offerings
and fees, affect average retail revenue per customer, and to assist in
forecasting future service retail revenue. In addition, retail ARPU provides
management with a useful measure to compare the company's customer retail
revenue to that of other wireless communications providers. The company
believes investors use retail ARPU primarily as a tool to track changes in the
company's average retail revenue per customer and to compare Clearwire's per
retail customer service revenues to those of other wireless communications
providers.

                        Three months ended
                        (Unaudited)
(in thousands)          December 31, September 30, June 30, 2012 December 31,
                         2012         2012                        2011
Total revenues           $311,241   $313,882    $316,932    $361,870
                                                              
Wholesale revenue        (116,590)   (116,498)    (117,560)    (164,082)
                                                              
Device and other revenue (15,763)    (15,956)     (14,694)     (14,540)
Retail ARPU revenue      $ 178,888   $ 181,428    $ 184,678    $ 183,248
                                                              
Average retail customers 1,352       1,342        1,335        1,308
Months in period         3           3            3            3
Retail ARPU              $44.10     $45.06      $46.12      $46.69

                        
                        
                        Year ended
                        (Unaudited)
(in thousands)           December 31, December 31,
                         2012         2011
Total revenues           $1,264,694 $1,253,466
                                    
Wholesale revenue        (468,469)   (493,661)
                                    
Device and other revenue (67,131)    (45,675)
Retail ARPU revenue      $ 729,094   $ 714,130
                                    
Average retail customers 1,335       1,265
Months in period         12          12
Retail ARPU              $45.51     $47.04

(3) Churn, which measures customer turnover, is calculated as the number of
subscribers that terminate service in a given period, divided by the weighted
average number of subscribers in that period, divided by the number of months
in that period. Retail customers are deactivated approximately 30 days after
failing to pay their monthly bill or when they ask to terminate their service.
Retail subscribers that discontinue service in the first 30 days of service
for any reason, or in the first 90 days of service under certain
circumstances, are deducted from the company's gross customer additions and
therefore not included in any of the churn calculations.

Management uses churn to measure retention of the company's subscribers, to
measure changes in customer retention over time, and to help evaluate how
changes in the business affect customer retention. The company believes
investors use churn primarily as a tool to track changes in the company's
customer retention. Other companies may calculate this measure differently.

(4) Retail CPGA (Cost per Gross Addition) is selling, general and
administrative costs, less general and administrative costs and acquired
businesses costs (costs from entities that were acquired by Clearwire's
predecessor entity) plus device equipment subsidies, divided by gross retail
customer additions in the period.

                        Three months ended
                        (Unaudited)
(in thousands)          December 31, September 30, June 30, 2012 December 31,
                         2012         2012                        2011
                                                              
Selling, general and     $138,489   $139,365    $137,693    $128,502
administrative
Less: G&A and other      (113,103)   (104,720)    (100,409)    (97,227)
Selling expense          25,386      34,645       37,284       31,275
Plus: Equipment COGS     16,300      17,707       8,959        9,875
Less:Equipment revenue  (9,042)     (9,396)      (8,269)      (9,111)
                                                              
Total retail CPGA        $32,644    $42,956     $37,974     $32,039
Expense
                                                              
Total gross adds         211         225          168          124
Total retail CPGA        $155       $191        $226        $259

                                   
                                   Year ended
                                   (Unaudited)
(in thousands)                     December 31, December 31,
                                    2012         2011
                                               
Selling, general and administrative $558,202   $698,067
Less: G&A and other                 (413,640)   (473,696)
Selling expense                     144,562     224,371
Plus: Equipment COGS                57,586      24,113
Less:Equipment revenue             (41,062)    (21,952)
                                               
Total retail CPGA Expense           $161,086   $226,532
                                               
Total gross adds                    800         776
Total retail CPGA                   $201       $292

Management uses retail CPGA to measure the efficiency of the company's
customer acquisition efforts, to track changes in Clearwire's average cost of
acquiring new subscribers over time, and to help evaluate how changes in the
company's sales and distribution strategies affect the cost-efficiency of the
company's customer acquisition efforts. Clearwire believes investors use
retail CPGA primarily as a tool to track changes in the company's average cost
of acquiring new subscribers.

CONTACT: Investor Relations:
         Alice Ryder, 425-505-6494
         alice.ryder@clearwire.com
        
         Media Relations:
         Susan Johnston, 425-505-6178
         susan.johnston@clearwire.com
        
         JLM Partners for Clearwire:
         Mike DiGioia or Jeremy Pemble, 206-381-3600
         mike@jlmpartners.com or jeremy@jlmpartners.com

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