SAN FRANCISCO, April 29, 2011 /PRNewswire/ -- FiberTower
Corporation (NASDAQ: FTWR), a wireless backhaul services provider,
announced that it received its second early termination notice from
Clearwire to discontinue service effective April 30, 2011, representing approximately
$434,000 in monthly service revenue.
Upon termination of these services, the customer's early
termination charges are expected to be approximately $1.9 million payable immediately.
Payment of the early termination charges of approximately
$1.5 million associated with service
terminated in February has been received by the company.
Clearwire is maintaining service with FiberTower of
approximately $80,000 in monthly
revenue, which represents about 16% of the total service revenue
the company had been billing Clearwire on a monthly basis.
As discussed on its fourth quarter 2010 conference call,
FiberTower adjusted its 2011 operating and capital plans in
anticipation of this circumstance, and does not believe that these
early terminations will have a material impact on the company's
cash position in 2011. The company reaffirms that it believes
that it has sufficient liquidity to support its business through
2011 and remains focused on prudent management of its cash balance
and capital outlays, and continues to explore alternatives to
position the company to participate on a larger scale in the growth
of wireless backhaul.
About FiberTower
FiberTower is a backhaul and access services provider focused
primarily on the wireless carrier market. With its extensive
spectrum footprint in 24 GHz and 39 GHz bands, carrier-class fiber
and microwave networks in 13 major markets and master service
agreements with nine U.S. wireless carriers, FiberTower is
considered to be a leading alternative carrier for wireless
backhaul. FiberTower also provides backhaul and access service to
government and enterprise markets. For more information, please
visit our website at www.fibertower.com.
Forward-Looking Statements
This news release includes "forward-looking" statements, as that
term is defined in the Private Securities Litigation Reform Act of
1995 or by the Securities and Exchange Commission, or SEC, in its
rules, regulations and releases. Forward-looking statements
relate to expectations, beliefs, projections, future plans and
strategies, anticipated events or trends and similar expressions
concerning matters that are not historical facts. These
include statements regarding, among other things, our future
financial performance and results of operations, our financial and
business prospects, the deployment of our services, capital
requirements and liquidity, financing prospects, planned capital
expenditures, and anticipated cash balances.
There are many risks, uncertainties and other factors that can
prevent the achievement of goals or cause results to differ
materially from those expressed or implied by these forward-looking
statements. These include, among other things, negative cash
flows and operating and net losses, additional liquidity
requirements, potential loss of significant customers, downturns in
the wireless communication industry, regulatory costs and
restrictions, potential loss of FCC licenses, equipment supply
disruptions and cost increases, competition from alternative
backhaul service providers and technologies, along with those risk
factors described in the company's Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q, as filed with the SEC.
SOURCE FiberTower Corporation