Clearwire 2008 Annual Report Download - page 10

Download and view the complete annual report

Please find page 10 of the 2008 Clearwire annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

and our unique business model. Our objective is clear as we strive to deliver a simple value
proposition aimed at improving our customers’ productivity and making their lives more
enjoyable, wherever they happen to be.
I look forward to reporting on our team’s progress as we strive to take full advantage of the
business opportunity ahead of us.
Warm regards,
William T. Morrow
Chief Executive O
cer
Notes:
(1) On November 28, 2008, Clearwire, Sprint Nextel Corporation, Comcast Corporation, Time Warner Cable, Inc., Bright House
Networks, LLC, Google Inc. and Intel Corporation completed the transactions (the “Transactions”) contemplated by the
Transaction Agreement and Plan of Merger entered into by the parties on May 7, 2008. In order to facilitate the most useful
comparative analysis between periods, the company has included in its Annual Report unaudited pro forma combined
statements of operations of Clearwire for the twelve month periods ending December 31, 2008 and 2007. The unaudited pro
forma combined statements of operations give e ect to the Transactions as if they were consummated on January 1, 2007,
and are based upon the fi nancial results for both Old Clearwire and the Sprint WiMAX Business for the relevant periods. A
full presentation of the unaudited pro forma combined statements of operations for the years ended December 31, 2008 and
2007, and accompanying notes, are provided on subsequent pages of the attached Annual Report on Form 10-K.
(2) Clearwire utilizes certain fi nancial measures which are widely used in the telecommunications industry and are not calculated
based on accounting principles generally accepted in the United States of America (GAAP). Certain of these fi nancial measures
are considered non-GAAP fi nancial measures within the meaning of Item 10 of Regulation S-K promulgated by the SEC.
(3) Average revenue per user, or ARPU, is a non-GAAP fi nancial measure and is defi ned as service revenue, less legacy
businesses revenue (businesses that were acquired through the acquisition of entities by Old Clearwire) and CPE (Customer
Premise Equipment) and PC Card revenue, divided by the average number of subscribers in the period divided by the
number of months in the period.
(4) Household penetration is defi ned as the number of subscribers at the end of the period divided by the total number of
households covered by Clearwire’s network at the end of the period.
(5) Market EBITDA is a non-GAAP fi nancial measure and is defi ned as earnings before taxes, interest, depreciation and
amortization in our individual markets, and does not include an allocation of corporate general and administrative expenses
or spectrum lease expense.