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Clearwire Corporation (CLWR)
Q2 2009 Earnings Call
August 11, 2009 4:30 pm ET
Mary Ekman - Vice President, Investor Relations
William T. Morrow - Chief Executive Officer
David J. Sach - Chief Financial Officer, Principal Accounting Officer
G. Michael Sievert - Chief Commercial Officer
Hope F. Cochran - Senior Vice President - Finance and Treasurer
Dr. John Saw - Vice President, Chief Technology Officer
Rick Prentiss - Raymond James
Simon Flannery - Morgan Stanley
Phil Cusick - Macquarrie
Michael Rollins - Citigroup
Kevin Rowe - Rowe Equity Research
Previous Statements by CLWR
» Clearwire Q3 2009 Earnings Call Transcript
» Clearwire Q1 2009 Earnings Call Transcript
» Clearwire Corporation Q4 2008 Earnings Call Transcript
Thank you, Latrice. Good afternoon, ladies and gentlemen. I’m Mary Ekman, Vice President of Investor Relations with Clearwire and I’d like to welcome you to our second quarter 2009 financial results conference call. With me today are Bill Morrow, Chief Executive Officer; David Satch, Chief Financial Officer; John Saw, Chief Technology Officer; Mike Sievert, Chief Commercial Officer; and Hope Cochrane, Senior Vice President, Finance and Treasurer.
During today’s call, Bill will review Clearwire's key results and accomplishments and will discuss our network expansion plans. David will highlight Q2 operating metrics and financial results and recap 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 have all had an opportunity to read the earnings release we issued earlier this afternoon which provides detailed information on Clearwire Corporation’s 2009 second quarter financial 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 Forward-looking statements include, among other things, our future financial and operating performance and financial condition, including projections and targets for 2009 and subsequent periods, subscriber growth, network development and market launch plans, strategic plans and objectives and the company’s goals regarding 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. We do appreciate you taking the time with us today. Bottom line is we are pleased with our recent performance and as you will hear, it provides further evidence to three important beliefs -- first, there is a demand for a superior mobile data service beyond what is available today. Second, the technology that we are using is mature and delivering as promised and third, our team is able to execute in a manner consistent with our business plan.
For a while now, we have stressed many of the advantages that the company has but have emphasized three in particular -- our spectrum depth, giving us the best position on capacity; our low-cost all IP network, giving us the best position on speed and latency; and our strategic investors, giving us unprecedented access to over 100 million customers, the Internet expertise, and leading chip design. Our goal from the beginning has been to leverage all of these great assets to move our vision to reality and in the past quarter, we’ve made notable progress on multiple fronts.
First, as I hope you are already aware, we have launched two additional markets, expanding the nation’s first 4G service to 8 million POPs. By year-end, our service area is expected to cover more than 40 million people, of which 30 million will be served by 4G.
Second, key wholesale partners are now actively reselling our 4G mobile Internet service -- Sprint, Comcast, and Time Warner have all recently announced details about their plans to retail service this year.
Third, we completed our key network vendor selections, bringing together the best in class to deliver the quality of performance that differentiates our service. We have recent independent third-party comparative analysis showing our network is now dramatically faster, clearly outperforming anything else on the mobile marketplace today, thanks in part to our suppliers.
Finally, we ended the quarter with a strong cash and investment balance of $2.5 billion. We are increasingly encouraged about the prospects for securing the necessary additional funding on terms that we find acceptable to cover up to 120 million by the end of 2010.
I will touch on each of these topics in greater detail but before doing so, I would like to tell you about a few of the key performance indicators for the second quarter of 2009 and the growing momentum that has been apparent midway through the current quarter. When we compare Q209 to the pro forma results for Q208, our employees delivered a 40% increase in covered POPs, a 9% increase in consolidated revenue, an 11% increase in our subscriber base, and launched new markets with a lower-than-expected increase in CPGA to $524. The team achieved this while holding our ARPU stable at $39.47 and we ended the quarter with a strong cash and investment balance that I just mentioned.