Sprint Corp – ‘8-K’ for 1/16/08 – EX-99

On:  Friday, 1/18/08, at 3:03pm ET   ·   For:  1/16/08   ·   Accession #:  101830-8-4   ·   File #:  1-04721

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         4     14K 
 2: EX-99       Press Release                                          2     13K 

EX-99   —   Press Release

EX-99
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                                                                    Exhibit 99.1

                                                                    News Release

[SPRINT LOGO]                                                      Sprint Nextel
                                                        2001 Edmund Halley Drive
                                                               Reston, Va. 20191

                                                                  Media Contact:
                                                      Leigh Horner, 703-433-3044
                                                         leigh.horner@sprint.com

                                                               Investor Contact:
                                                       Kurt Fawkes, 800-259-3755
                                                   investor.relations@sprint.com

SPRINT NEXTEL REPORTS FOURTH-QUARTER SUBSCRIBER RESULTS,
ANNOUNCES ACTIONS TO STREAMLINE OPERATIONS

RESTON, Va. - Jan. 18, 2008 - Sprint Nextel Corp. (NYSE: S) today reported      
wireless subscriber results for the fourth quarter of 2007, announced initial   
plans to streamline its business as part of an ongoing review of its operations 
and market approach, and provided an update on its annual assessment of the     
goodwill recorded on its financial statements.                                  

For the fourth quarter Sprint Nextel reported a net gain of 500,000 subscribers 
through wholesale channels, growth of 256,000 Boost Unlimited users and net     
additions of 20,000 subscribers within affiliate channels. These gains were     
offset by net losses of 683,000 post-paid subscribers and 202,000 traditional   
pre-paid users.                                                                 

In the fourth quarter, post-paid churn was 2.3 percent. Compared to the third   
quarter, improved voluntary churn in both the CDMA and iDEN customer bases was  
offset by higher involuntary churn. At the end of 2007, Sprint Nextel served a  
total subscriber base of 53.8 million subscribers including 40.8 million        
post-paid, 4.1 million traditional pre-paid, 500,000 Boost Unlimited, 7.7       
million wholesale and 850,000 subscribers through affiliates.                   

Anticipating continued downward pressure on subscriber trends, revenues, and    
profitability in 2008, Sprint Nextel also announced initial plans to streamline 
the business in coming months. These plans call for job reductions across the   
company including approximately 4,000 internal positions and reduced utilization
of outsourced services and contractors. The company also expects to eliminate   
more than 4,000 third-party distribution points and to close approximately 125, 
or 8 percent, of its company-owned retail locations. The company has            
approximately 20,000 total distribution points, including nearly 1,400          
company-owned retail locations.                                                 

Sprint Nextel currently expects these actions to reduce its internal and        
external labor costs by an annualized rate of $700-$800 million by the end of   
2008. The employee headcount reductions are expected to be completed in the     
first half of the year and will include management and non-management positions 
throughout the company. The company will offer a voluntary separation plan for  
its employees, and displaced employees will receive separation pay and          
outplacement and other services. The company expects to record a first-quarter  
charge for severance costs associated with the workforce reduction.             

EX-99
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Sprint Nextel is currently performing its annual assessment of the goodwill     
recorded on its financial statements and expects to conclude this process prior 
to the release of its fourth-quarter earnings report. Given current market      
conditions, particularly the recent decrease in the company's stock price,      
Sprint Nextel could determine that it will record a non-cash impairment charge  
related to goodwill in the fourth quarter 2007. Any such charge would have no   
affect on either the company's current cash balance or future cash flows.       

Sprint Nextel currently expects to announce fourth-quarter and full-year 2007   
results on Feb. 28.                                                             

About Sprint Nextel                                                             

Sprint Nextel offers a comprehensive range of wireless and wireline             
communications services bringing the freedom of mobility to consumers,          
businesses and government users. Sprint Nextel is widely recognized for         
developing, engineering and deploying innovative technologies, including two    
robust wireless networks serving approximately 54 million customers at the end  
of 2007; industry-leading mobile data services; instant national and            
international walkie-talkie capabilities; and a global Tier 1 Internet backbone.
For more information, visit www.sprint.com.                                     

Safe Harbor                                                                     

This news release includes "forward-looking statements" within the meaning of   
the securities laws. The statements in this new release related to the workforce
reduction, streamlining of distribution points and the annual assessment of     
goodwill, as well as other statements, that are not historical facts are        
forward-looking statements. The words "estimate," "project," "forecast,"        
"intend," "expect," "believe," "target," "providing guidance" and similar       
expressions are intended to identify forward-looking statements. Forward-looking
statements are projections reflecting management's judgment and assumptions     
based on currently available information and involve a number of risks and      
uncertainties that could cause actual results to differ materially from those   
suggested by forward-looking statements.                                        

Future performance cannot be assured. Actual results may differ materially from 
those in the forward-looking statements due to a variety of factors, including, 
but not limited to: competitive conditions and market acceptance of Sprint      
Nextel's products and services; the impact of adverse network performance;      
customer growth and retention; the availability of devices; future results of   
operations; the timing of various events and the economic environment; and other
risks referenced from time to time in Sprint Nextel's filings with the          
Securities and Exchange Commission, including in the Form 10-K for the year     
ended December 31, 2006, in Part I, Item 1A, "Risk Factors."                    

Sprint Nextel believes the forward-looking statements in this press release are 
reasonable; however, you should not place undue reliance on forward-looking     
statements, which are based on current expectations and speak only as of the    
date of this release. Sprint Nextel is not obligated to publicly release any    
revisions to forward-looking statements to reflect events after the date of this
release.                                                                        

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘8-K’ Filing		Date		First		Last			Other Filings
Filed on:		1/18/08		1
For Period End:		1/16/08
		12/31/06		2					10-K
									List all Filings