Clearwire 2007 Annual Report Download - page 108

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18. Quarterly Financial Information (unaudited)
Summarized quarterly financial information for the years ended December 31, 2007 and 2006 is as follows (in
thousands, except per share data):
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Year Ended
December 31,
2007
Total revenues .................... $29,275 $ 35,484 $ 41,297 $ 45,384 $ 151,440
Gross profit(1) .................... 12,540 12,171 12,029 7,419 44,159
Operating loss .................... (86,189) (110,319) (142,526) (159,981) (499,015)
Net loss ......................... (92,635) (118,085) (328,637) (188,109) (727,466)
Net loss per common share, basic and
diluted ........................ $ (0.64) $ (0.72) $ (2.01) $ (1.15) $ (4.58)
2006
Total revenues .................... $22,748 $ 26,791 $ 26,899 $ 23,743 $ 100,181
Gross profit(1) .................... 8,886 5,683 8,196 7,304 30,069
Operating loss .................... (45,150) (61,336) (42,979) (88,650) (238,115)
Net loss ......................... (55,279) (76,809) (59,763) (92,352) (284,203)
Net loss per common share, basic and
diluted ........................ $ (0.73) $ (1.01) $ (0.61) $ (0.67) $ (2.93)
(1) Gross profit excludes a portion of depreciation and amortization included in operating loss.
19. Subsequent Events
Interest Rate Swaps
In January 2008, the Company entered into two interest rate swaps to hedge its forward three-month LIBOR
indexed variable interest payments in an effort to reduce interest expense. The first swap was entered on January 4,
2008, effective March 5, 2008, to pay a fixed rate of 3.6225% and to receive the three-month LIBOR on a notional
value of $300.0 million for three years. The second swap was entered on January 7, 2008, effective March 5, 2008,
to pay a fixed rate of 3.5% and to receive the three-month LIBOR on a notional value of $300.0 million for two
years. In accordance with SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, its
amendments and related guidance, the Company will treat the interest rate swaps as “cash-flow hedges” and will
record the fair value of the swaps at the end of each calendar quarter, starting March 31, 2008.
100
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)