Metro PCS 2007 Annual Report Download - page 55

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44
If Freedom Wireless is successful in its claim for injunctive relief, we could be enjoined from operating our
business in the manner we operate currently, which could require us to redesign our current billing or other systems,
to expend additional capital to change certain of our technologies and operating practices, or could prevent us from
offering certain of our services. In addition, if Freedom Wireless is successful in its claim for monetary damage, we
could be forced to pay substantial damages, including treble damages, for past infringement and/or ongoing royalties
on a portion of our revenues, which could materially adversely impact our financial performance. If Freedom
Wireless prevails in its action, it could have a material adverse effect on our business, financial condition and results
of operations. Moreover, the actions may consume valuable management time, may be very costly to defend and
may distract management attention away from our business.
In addition, we are involved in other litigation from time to time, including litigation regarding intellectual
property claims that we consider to be in the normal course of business. We are not currently party to any other
pending legal proceedings that we believe would, individually or in the aggregate, have a material adverse effect on
our financial condition or results of operations.
Item 4. Submission of Matters to a Vote of Security Holders
None.
PART II
Item 5. Market Price for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities
Market Information
Our common stock began trading on April 19, 2007 on the New York Stock Exchange under the symbol “PCS.”
Prior to April 19, 2007, there was no established public trading market for our common stock. The following table
sets forth for the periods indicated the high and low composite per share prices as reported by the New York Stock
Exchange.
High Low
Fiscal year ended December 31, 2007
Second quarter $ 36.68 $ 27.40
Third quarter 40.33 24.15
Fourth quarter 27.85 15.10
Holders
As of January 31, 2008, the closing price of our common stock was $18.18 per share, there were
348,142,926 shares of our common stock outstanding, and there were approximately 6,800 holders of record of our
common stock.
Dividends
We have never paid or declared any regular dividends on our common stock and do not intend to declare or pay
regular dividends on our common stock in the foreseeable future. The terms of our senior secured credit facility and
the indenture related to the 9¼% senior notes restrict our ability to declare or pay dividends. We currently intend to
retain the future earnings, if any, to invest in our business. Subject to Delaware law, our board of directors will
determine the payment of future dividends on our common stock, if any, and the amount of any dividends in light
of:
• any applicable contractual restrictions limiting our ability to pay dividends;
• our earnings and cash flows;
• our capital requirements;
• our future needs for cash;