WiMAX provider Clearwire (Nasdaq: CLWR) is between a rock and a hard place that only has a little to do with the lack of financial support it's getting from industry partners like Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC-WI) and Sprint (NYSE: S). The service provider reported it gained 1.23 million subscribers in the third quarter on revenue that rose 114 percent to $147 million.
That was the good news. The bad news is that Clearwire lost $139 million in the quarter and will have to lay off 15 percent of its employees (about 600 people according to some published reports), cut deeply into its contractor workforce and suspend zoning and permitting activities in some markets. It also announced the delay of its Clear brand smartphone.
Clearwire has been scrambling around for funding sources after its partners said they wouldn't pour in any more money. Among the lead suggestions at this point are the sale of some unused spectrum, but thus far, not a lot of buyers have been lining up.
For more:
- see this news release
Related articles:
Clearwire mulls funding options, in talks with T-Mobile USA
Clearwire reportedly auctioning off spectrum
Owning-and owning up-at Clearwire
More third quarter results:
- click here for earnings results and related stories