Filed On 1/18/08 3:03pm ET · SEC File 1-04721 · Accession Number 101830-8-4
As Of Filer Filing As/For/On Docs:Pgs
1/18/08 Sprint Nextel Corp 8-K{2,7,9} 1/16/08 2:6
Current Report · Form 8-K
Filing Table of Contents
Document/Exhibit Description Pages Size
1: 8-K Current Report 4 9K
2: EX-99 Press Release 2 10K
EX-99 · Press Release
| EX-99 | 1st Page of 2 | TOC | Top | Previous | Next | Bottom | Just 1st |
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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.
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 |
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| This 8-K Filing | | Date | | First | | Last | | | Other Filings |
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| |  |
| | 12/31/06 | | 2 | | | | | 10-K |
| For The Period Ended | | 1/16/08 |
| Filed On / Filed As Of | | 1/18/08 | | 1 |
| |
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