Though it reported record growth in both income and subscriber count, Clearwire’s bad news outweighed the great as it announced its fourth quarter gain today. Here’s the meat of it:”The Company is actively posterior a number of options to resolve the need for additional collateral. The Company is in discussions with a series of its major shareholders and other third parties about the number of options, together with potential strategic exchange, additional debt or equity financings and/or item sales. While a Company is carefully confident it will resolve the short-term appropriation needs in a near destiny, there can be no assurances. Thus, it is implementing a series of poignant cash charge measures to reduce costs, including: the substantial rebate in sales as well as marketing spending, a cessation of one more retail channel market launches of a CLEAR-branded operations in name markets together with Denver and Miami, delays in the key of CLEAR-branded smartphones, a estimable reduction in the contractor workforce, the 15% reduction in the number of employees, as well as a discontinuation of growth activities for sites not required for the current build devise. The Company currently has thousands of sites in various stages of planning as well as construction beyond its current setup devise, as well as it intends to postpone zoning as well as needing in a apportionment of those sites until such time as one more funding becomes available.”Translation: they’re using low on cash, they’re looking for ways to lift more of it, as well as until they do, they aren’t launching those promised Clear-branded phones or opening any more sell locations. They’re also slicing staff by 15 percent, scaling behind Clear selling, and suspending network formulation over things that’s already in the functions — the flattering extreme step deliberation how much build-out Clearwire’s network still needs. Though Sprint depends heavily upon Clearwire for the stream WiMAX setup, it’s misleading whether Sprint would be peaceful to goon to bailout money into the partnership — particularly deliberation the recent rumors that they’re looking to reach out to alternative carriers — as well as Comcast has already gone upon jot down saying they don’t see themselves branch into a Clearwire ATM.

Obviously, both Clearwire’s spectrum holdings as well as the infrastructure are unusually profitable and we wouldn’t tune any alarms which Sprint’s WiMAX network is in any risk of disintegrating, though we’re certain this is sounding some alarms during Sprint headquarters which it’s time to make some vital moves. Should be interesting to see how this all plays out.

Via Engadget