Clearwire 2008 Annual Report Download - page 131

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p
ro
d
ucts an
d
serv
i
ces. Goog
l
ew
ill
prov
id
ea
d
vert
i
s
i
ng serv
i
ces to us
f
or use w
i
t
h
certa
i
nwe
b
s
i
tes an
dd
ev
i
ces, an
d
we w
ill
ut
ili
ze t
h
ese Goog
l
ea
d
vert
i
s
i
ng serv
i
ces on an exc
l
us
i
ve
b
as
i
s
f
or
i
ts reta
il
customers. Goog
l
ew
ill
pay us a
p
ercenta
g
e of the revenue that Goo
g
le
g
enerates from these advertisin
g
services. Goo
g
le will also provide a suite o
f
h
oste
d
commun
i
cat
i
ons serv
i
ces,
i
nc
l
u
di
ng ema
il
,
i
nstant messag
i
ng an
d
ca
l
en
d
ar
f
unct
i
ona
li
ty, to us
f
or
i
nte
-
grat
i
on
i
nto our
d
es
k
top porta
l
o
ff
er
i
ng. Furt
h
ermore, we w
ill
support t
h
e open-source An
d
ro
id
p
l
at
f
orm, w
ill
wor
k
with Goo
g
le to offer certain other Goo
g
le applications, and will explore workin
g
with Goo
g
le on a variet
y
of othe
r
p
otential products and services. The Google Products and Services Agreement will have a term of three years
.
Google Spectrum Agreement
—
We entered into a spectrum a
g
reement with Goo
g
le, or the Goo
g
le Spectrum
A
greement, pursuant to which we will make available to Google certain of our excess 2.5 GHz spectrum in variou
s
m
ar
k
ets
f
or exper
i
menta
l
usage
b
y Goog
l
e, an
df
or
d
eve
l
opment o
f
a
l
ternat
i
ve app
li
cat
i
ons
b
yt
hi
r
d
-part
i
es
operatin
g
under the direction and approval of Goo
g
le and us. The third-part
y
use of our spectrum be
y
ond that use
d
f
or W
i
MAX tec
h
no
l
ogy can not
b
eut
ili
ze
di
n a manner t
h
at w
ill i
nter
f
ere w
i
t
h
our use o
f
our spectrum
f
or W
i
MA
X
t
ec
h
no
l
ogy, an
d
w
ill b
esu
bj
ect to ava
il
a
bili
ty. T
h
e revenue generate
df
rom t
h
e spectrum usage ot
h
er t
h
an
f
or
W
iMAX technolo
gy
will be shared b
y
Goo
g
le and us. In addition, both parties will a
g
ree to form a
j
oint technolo
gy
t
eam to manage the activities outlined in the Google Spectrum Agreement. The Google Spectrum Agreemen
t
p
rov
id
es
f
or an
i
n
i
t
i
a
l
term o
ffi
ve years
f
rom t
h
e
d
ate o
f
t
h
e agreement. T
h
e Goog
l
e Spectrum Agreement w
ill b
e
t
erm
i
na
bl
e
by
e
i
t
h
er part
y
on
d
e
f
au
l
to
f
t
h
eot
h
er part
y.
Motoro
l
aA
g
reements — As a resu
l
to
f
t
h
e Transact
i
ons, we assume
d
commerc
i
a
l
agreements w
i
t
h
Motoro
la
where we are commited to purchase certain infrastructure and suppl
y
inventor
y
from Motorola. Certain of our
s
ubsidiaries are also commited to purchase certain t
y
p
e
s of network infrastructure
p
roducts, modems and PC card
s
we provide to our subscribers exclusively from Motorola through August 2011 and, thereafter,
5
1% until the term of th
e
a
g
reement
i
s comp
l
ete
d
on Au
g
ust 29, 2014, as
l
on
g
as certa
i
ncon
di
t
i
ons are sat
i
s
fi
e
d
.Fort
h
eper
i
o
df
o
ll
ow
i
n
g
t
he
Closin
g
, we paid Motorola $2.4 million under these a
g
reements. The remainin
g
commitment was $10.7 million at
D
ecember 31
,
2008
.
20. Quarterly Financial Information
(
unaudited
)
Summar
i
ze
d
quarter
ly fi
nanc
i
a
li
n
f
ormat
i
on
f
or t
h
e
y
ears en
d
e
d
Decem
b
er 31, 2008 an
d
2007
i
sas
f
o
ll
ows (
in
t
housands, exce
p
t
p
er share data):
F
irst
S
econd Third Fourth Tota
l
2008 q
uarter:
T
otal re
v
enue
s
.
..................... $ — $ — $ — $ 20,489 $ 20,489
G
ross loss(1) .......................
$
(26,861) $(25,577) $ (31,147) $ (27,415) $(111,000)
O
peratin
g
loss(2)
....................
$(95,101) $(73,679) $ (90,864) $(233,434) $(493,078
)
N
et loss
...........................
$(97,437) $(79,566) $(137,603) $(118,020) $(432,626
)
Net loss
p
er common share:
Bas
i
c
.............................
$
(
0.16
)
$
(
0.16
)
D
il
uted
............................
$
(
0.28
)$ (
0.28
)
2007 quarter:
T
ota
l
re
v
enue
s
.
.....................
$
—
$
—
$
—
$
—
$—
G
ross
l
oss
(
1
)
.......................
$(
3,758
)$(
4,602
)$
(
5,606
)$(
34,899
)$(
48,865
)
O
perat
i
ng
l
os
s
......................
$(
29,267
)$(
39,596
)$(
39,194
)$(
104,328
)$(
212,385
)
N
et
l
oss
...........................
$(
32,563
)$(
41,809
)$(
42,045
)$(
108,308
)$(
224,725
)
(1) Gross
l
oss exc
l
u
d
es
d
eprec
i
at
i
on an
d
amort
i
zat
i
on
i
nc
l
u
d
e
di
n operat
i
n
gl
oss
.
(2) Operatin
g
loss includes a non-recurrin
g
char
g
e of approximatel
y
$80.6 million related to the settlement of
s
pectrum lease contracts.
119
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)