Clearwire 1st-quarter loss grows; subscribers rise

SAN FRANCISCO (Reuters) - High-speed wireless Internet provider Clearwire Corp (CLWR.O: Quote, Profile, Research, Stock Buzz) posted a wider net loss on Monday as operating expenses climbed, but said the number of subscribers jumped 72 percent from a year earlier.

The company, which is receiving investments from Sprint Nextel Corp (S.N: Quote, Profile, Research, Stock Buzz) and top U.S. cable companies to roll out its fast wireless Web service, said it had a first-quarter net loss of $176.4 million, or $1.08 per share.

In the year-ago period, it had a net loss of $92.6 million, or 64 cents per share.

Clearwire cited higher expenses as well as costs from attracting new subscribers and leasing spectrum. Selling, general and administrative costs jumped 44 percent to $99.1 million, while spectrum lease expenses soared 165 percent to $35.7 million.

Revenue climbed 76 percent to $51.5 million from $29.3 million a year earlier.

The company, founded by wireless pioneer Craig McCaw, said it topped 400,000 subscribers in January, and ended the quarter with about 443,000 subscribers, up 72 percent on the year.

Clearwire shares rose 30 cents, or 2.3 percent, in extended trading following a drop of $1.35, or 10 percent, in the regular Nasdaq session.

Clearwire shares have tumbled 16 percent since last week, when the company said it would merge its WiMax high-speed wireless assets with those of Sprint Nextel.

Wall Street frowned on the deal. Analysts said the value of the joint venture would likely be lower than the $14.5 billion target set by the companies, that the WiMax technology involved was still largely unproven, and that it would face challenges building out network coverage.

(Reporting by Duncan Martell; editing by Jeffrey Benkoe)