Clearwire 2008 Annual Report Download - page 52

•
diffi
cu
l
t
i
es
i
n conso
lid
at
i
ng an
d
prepar
i
ng our
fi
nanc
i
a
l
statements
d
ue to poor account
i
ng recor
d
s, wea
k
financial controls and, in some cases, financial records at ac
q
uired entities not based on U.S. GAA
P
particularly those entities in which we lack control; an
d
• inabilit
y
to predict or anticipate market developments and capital commitments relatin
g
to the acquired
c
ompany, business or technology
.
T
he anticipated benefit of an
y
of our strate
g
ic transactions ma
y
never materialize. Future investments,
acquisitions or dispositions, or similar arrangements could result in dilutive issuances of our equity securities, the
i
ncurrence o
fd
e
b
t, cont
i
ngent
li
a
bili
t
i
es or
i
mpa
i
rment o
f
assets, tang
ibl
eor
i
ntang
ibl
e, or wr
i
te-o
ff
so
f
goo
d
w
ill,
an
y
o
f
w
hi
c
h
cou
ld h
arm our
fi
nanc
i
a
l
con
di
t
i
on. An
y
suc
h
transact
i
ons ma
y
requ
i
re us to o
b
ta
i
na
ddi
t
i
ona
l
equ
i
t
y
o
r
debt financing, which may not be available on favorable terms, or at all. Old Clearwire has experienced certain of
t
hese risks in connection with its acquisitions and investments in the past, and the occurrence of any of these risks i
n
th
e
f
uture ma
yh
ave a mater
i
a
l
a
d
verse e
ff
ect on our
b
us
i
ness. A
ddi
t
i
ona
lly
,t
h
e uncerta
i
nt
yi
nt
h
e cre
di
t mar
k
ets
m
a
y
adversel
y
affect the value and liquidit
y
of some of our short-term investments.
Our
b
usinesses outsi
d
et
h
e Unite
d
States o
p
erate in a com
p
etitive environment
d
i
ff
erent t
h
an t
h
e environ-
m
ent wit
h
in t
h
e Unite
d
States. An
yd
i
ff
icu
l
ties in managing t
h
ese
b
usinesses cou
ld
occu
py
a
d
is
p
ro
p
or-
t
ionate amount of our management’s attention and disrupt our operations
.
We operate or
h
o
ld
spectrum outs
id
eo
f
t
h
eUn
i
te
d
States t
h
roug
h
our su
b
s
idi
ar
i
es
i
nBe
l
g
i
um, Ire
l
an
d
,
G
erman
y
, Poland, Romania and Spain and an investment in Mexico. Sub
j
ect to the limitations imposed b
y
th
e
E
qu
i
ty
h
o
ld
ers’ Agreement, we may e
l
ect to pursue a
ddi
t
i
ona
l
opportun
i
t
i
es
i
n certa
i
n
i
nternat
i
ona
l
mar
k
ets t
h
roug
h
acqu
i
s
i
t
i
ons an
d
strateg
i
ca
lli
ances;
h
owever, our
f
ocus w
ill b
e on mar
k
ets w
i
t
hi
nt
h
eUn
i
te
d
States. Our act
i
v
i
t
i
es
outside the United States operate in different environments than we face in the United States, particularl
y
with
r
espect to regulation of competition and spectrum. Due to these differences, our activities outside the United States
m
a
y
requ
i
re a
di
sproport
i
onate amount o
f
our mana
g
ement an
dfi
nanc
i
a
l
resources, w
hi
c
h
cou
ld di
srupt ou
r
operat
i
ons an
d
a
d
verse
ly
a
ff
ect our
b
us
i
ness e
l
sew
h
ere
.
I
n a num
b
er o
fi
nternat
i
ona
l
mar
k
ets, we
f
ace su
b
stant
i
a
l
compet
i
t
i
on
f
rom
l
oca
l
serv
i
ce prov
id
ers t
h
at o
ff
er o
r
m
a
y
o
ff
er t
h
e
i
r own w
i
re
l
ess
b
roa
db
an
d
or VoIP te
l
ep
h
on
y
serv
i
ces an
df
rom ot
h
er compan
i
es t
h
at prov
id
e Internet
c
onnectivity services. We may face heightened challenges in gaining market share, particularly in certain European
c
ountr
i
es, w
h
ere a
l
ar
g
e port
i
on o
f
t
h
e popu
l
at
i
on a
l
rea
dy h
as
b
roa
db
an
d
Internet connect
i
v
i
t
y
an
di
ncum
b
ent
c
ompan
i
es a
l
rea
dy h
ave a
d
om
i
nant mar
k
et s
h
are
i
nt
h
e
i
r serv
i
ce areas. Furt
h
ermore,
f
ore
ig
n prov
id
ers o
f
c
ompetin
g
services ma
y
have a substantial advanta
g
e over us in attractin
g
subscribers due to a more establishe
d
b
ran
d
, greater
k
now
l
e
d
ge o
fl
oca
l
su
b
scr
ib
ers’ pre
f
erences an
d
access to s
i
gn
ifi
cant
fi
nanc
i
a
l
or strateg
i
c resources
.
I
n addition, in some international markets, forei
g
n
g
overnmental authorities ma
y
own or control the incumben
t
t
e
l
ecommun
i
cat
i
ons compan
i
es operat
i
ng un
d
er t
h
e
i
r
j
ur
i
s
di
ct
i
on. Esta
bli
s
h
e
d
re
l
at
i
ons
hi
ps
b
etween government-
owne
d
or government-contro
ll
e
d
te
l
ecommun
i
cat
i
ons compan
i
es an
d
t
h
e
i
r tra
di
t
i
ona
ll
oca
l
te
l
ecommun
i
cat
i
on
s
p
roviders often limit access of third
p
arties to these markets. The successful ex
p
ansion of our international
operat
i
ons
i
n some mar
k
ets may
d
epen
d
on our a
bili
ty to
l
ocate,
f
orm an
d
ma
i
nta
i
n strong re
l
at
i
ons
hi
ps w
i
t
h
e
sta
bli
s
h
e
dl
oca
l
commun
i
cat
i
on serv
i
ces an
d
equ
i
pment prov
id
ers. Fa
il
ure to esta
bli
s
h
t
h
ese re
l
at
i
ons
hi
ps or t
o
m
arket or sell our products and services successfull
y
could limit our abilit
y
to attract subscribers to our services.
We re
ly
on
h
ig
hly
s
k
i
ll
e
d
executives an
d
ot
h
er
p
ersonne
l
.I
f
we cannot retain an
d
motivate
k
e
yp
ersonne
l
,
w
e may be unable to implement our business strategy
.
O
ur future success depends largely on the expertise and reputation of the members of our senior management
t
eam,
i
nc
l
u
di
n
g
W
illi
am T. Morrow, our C
hi
e
f
Execut
i
ve O
ffi
cer, Ben
j
am
i
nG.Wo
lff
, our Co-C
h
a
i
rman, Barr
y
W
est, our Pres
id
ent, Perr
y
Satter
l
ee, our C
hi
e
f
Operat
i
n
g
O
ffi
cer, an
d
Dav
id
J. Sac
h
, our C
hi
e
f
F
i
nanc
i
a
l
O
ffi
cer. I
n
addition, we intend to hire additional highly skilled individuals to staff our operations and our support functions.
L
oss o
f
an
y
o
f
our
k
e
y
personne
l
or t
h
e
i
na
bili
t
y
to recru
i
tan
d
reta
i
n qua
lifi
e
di
n
di
v
id
ua
l
s
f
or our
d
omest
i
can
d
i
nternat
i
ona
l
operat
i
ons cou
ld
a
d
verse
ly
a
ff
ect our a
bili
t
y
to
i
mp
l
ement our
b
us
i
ness strate
gy
an
d
operate our
b
usiness
.
40