The chairman of Clearwire's board of directors will resign his position today, according to a filing with the Securities and Exchange Commission. Craig McCaw, who served as chairman for two years, did not resign over any disagreements with the company or over any matters pertaining to the company's operations or practices, according to the filing.
The company, which has visions of being a major player in the 4G wireless space, has been adding subscribers at a rapid clip as the WiMax technology has rolled out into cities. But the company has also hit a cash crunch and, last month, said it will have to cut its workforce by 15 percent, trim its marketing spend and delays plans for launches in other cities.
For its third quarter, the company added 1.23 million new subscribers, bringing the total to 2.84 million. Clearwire said its cash conservation efforts will save about $100 million to $200 million in 2010 and again in the first half of 2011.
Revenue was up in the most recent quarter - reaching $147 million, or a 114 percent increase over the year-ago quarter- but so was spending, as the company continued to roll out its services. The company said it expected to spend $3.2 billion to $3.4 billion in 2010.
McCaw was originally nominated to the board by investors Eagle River Holdings, which intends to nominate Benjamin Wolff, Clearwire's co-founder and former co-chairman, as McCaw's replacement, the filing said.
Separately, the company also filed an addendum to the company's agreement with Chief Financial Officer Erik Prusch, stating that, in lieu of reimbursing Prusch for expenses related to the sale of his home, as was agreed upon in the original agreement, the company's relocation agent will instead purchase the home with intentions of reselling it.