Clearwire Corporation (CLWR)
Q1 2009 Earnings Call
May 13, 2009 4:30 pm ET
Mary Ekman - Investor Relations
William T. Morrow - Chief Executive Officer
David J. Sach - Chief Financial Officer
Perry S. Satterlee - Chief Operating Officer
Dr. John Saw - Vice President, Chief Technology Officer
Scott Richardson - Chief Strategy Officer
Hope F. Cochran - Vice President - Finance, Treasurer
Rick Prentiss - Raymond James
John Hodulik - UBS
Simon Flannery - Morgan Stanley
Walter Piecyk - Pali Capital
Kevin Rowe - Rowe Equity Research
Previous Statements by CLWR
» Clearwire Q3 2009 Earnings Call Transcript
» Clearwire Q2 2009 Earnings Call Transcript
» Clearwire Corporation Q4 2008 Earnings Call Transcript
Hope F. Cochran
Thank you, Michelle. Good afternoon, ladies and gentlemen. I’m Mary Ekman, Vice President Investor Relations with Clearwire, and I would like to welcome you to our first quarter 2009 financial results conference call. With me today are Bill Morrow, Chief Executive Officer; David Sach, Chief Financial Officer; Perry Satterlee, Chief Operating Officer; John Saw, Chief Technology Officer; Scott Richardson, Chief Strategy Officer; and Hope Cochran, Senior Vice President, Finance and Treasurer.
During today’s call, Bill will share his initial views on the business and review Clearwire's key results and accomplishments. David will highlight Q1 operating metrics and financial results and discuss Clearwire's business outlook. Following our prepared remarks, we will open the lines for your questions.
This afternoon’s call is scheduled to last approximately 45 minutes, including Q&A.
As a reminder to all listeners, today’s call is being webcast live on the Clearwire investor relations website and will be archived on that site and available for replay shortly after we conclude.
Hopefully you’ve all had an opportunity to read the earnings release we issued earlier this afternoon which provides detailed financial information on Clearwire Corporation’s 2009 first quarter results. A reconciliation of pro forma financial information and any non-GAAP financial measures discussed on this call can also be found in our press release.
Today’s call may contain forward-looking statements reflecting management’s beliefs and assumptions concerning future events and trends in or expectations regarding financial results. Forward-looking statements include, among other things, our future financial and operating performance and financial conditions, including projections and targets for 2009 and subsequent periods, subscriber growth, network development and market launch plans, strategic plans and objectives, and the need for additional financing. These forward-looking statements are all based on currently available operating financial and competitive information and are subject to various risks and uncertainties. Listeners are cautioned not to put undue reliance on any forward-looking statements as they are not a guarantee of future performance.
Please refer to our press release and our filings with the SEC for more information concerning risk factors that could cause actual results to differ materially from those in the forward-looking statements. The company assumes no obligation to update any of these forward-looking statements.
At this time, I would like to turn the call over to Bill Morrow.
William T. Morrow
Thank you, Mary and good afternoon, everyone. As many of you know, it’s been two months since I’ve joined Clearwire and I must say it feels really good to be back in telecom and especially so to be with a company that has a differentiated set of assets matched with an emerging demand.
Now, the focus of this call naturally is about our first quarter results but as Mary said, I would like to start with an early perspective on how I see the opportunity in front of us and what it’s going to take for us to monetize our position. I will tie this into some of the operational highlights and then turn it over to David.
We are beginning to see an intersection of trends observed on applications over fixed broadband, 3G mobile data, and consumer electronics. The high capacity, high data rates, and IT characteristics of fixed broadband have led to an increased demand for online shopping, banking, and research. We’ve observed social networking applications such as MySpace, Facebook, and Twitter create this viral marketing effect for people to stay connected to others in a richer context than just email.
We’ve also seen more and more online video intensive games being taken up by a broader age segment, and we now have popular applications that stream audio and video links, such as Pandora, [Slingbox], and Hulu.
The second trend of interest is related to the wireless 2G and 3G networks. The industry has observed that with the right interface and applications, consumers will purchase Internet connectivity with mobility but there is much evidence that indicates that there is not enough capacity, the bandwidth is too narrow, and the latency performance associated with packet switched architectures are insufficient.
So in short, the demand is there but 3G can only offer a subset of the full Internet experience observed on the fixed broadband connection.
The third trend is around the proliferation of more and more consumer electronics with lower cost and higher functionality. As such, we can envision a broader base of devices that will be connected with a wireless medium. Sony has reported that nearly 90% of the electronics produced by 2011 will have some form of radio communication capabilities.
The point of intersection associated with these trends suggests the need to connect more devices to maintain mobility and to offer a depth of capacity and bandwidth that has yet to be seen by any existing wireless solution, and it must be delivered at a much lower cost than what we see in the marketplace today.