FiberTower Receives Termination Notice From Clearwire

FiberTower Corporation FTWR 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.