Clearwire Jumps After Company Posts Narrower Operating Loss
Clearwire Corp. (CLWR), the unprofitable wholesale wireless carrier building a network across the U.S., climbed 6.4 percent after its second-quarter operating loss narrowed.
Last quarter’s operating loss shrank to $311.3 million from $911.6 million a year earlier, the Bellevue, Washington-based company said yesterday in a statement. Revenue decreased 1.8 percent to $316.9 million.
The carrier, which hasn’t reported an annual profit in at least five years, benefited from lower operating expenses last quarter. Expenses from goods, services and network costs declined 48 percent to $224.4 million. Clearwire shares had fallen to a record low earlier this week on concern that it was running out of money and needed to sell assets.
“We’ve got time on our hands,” Chief Executive Officer Erik Prusch said in an interview. “And the good thing is, we have a very valuable asset that everyone is looking for.”
Prusch said he had significant discussions about wholesale deals and sales of wireless spectrum. He declined to give details. The company reported cash and equivalents of $1.21 billion at the end of June, down from $1.43 billion three months earlier.
The company, which is majority owned by Sprint Nextel Corp. (S), is trying to build a faster network using technology called long-term evolution, or LTE. It said in February it may need to raise “substantial additional capital” to fund its business. Clearwire has said it has enough cash for at least 12 months.
In December, Clearwire signed a four-year network-sharing agreement valued at about $1.6 billion with Sprint, which accounts for most of its revenue.
The company also named Slade Gorton, a former U.S. senator, to its board yesterday.
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