FiberTower Corporation Q4 2007 Earnings Call Transcript

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2008-03-14 09:18:08.0

Tags: FiberTower Corp.

Question-and-Answer Session

Operator

Thank you. (Operator Instruction). Our first question comes from the line of Mark DeRussy with Raymond James. Please go ahead.

Mark DeRussy - Raymond James

Hi. Good morning, everybody. As I recall, my recollection was that you had been thinking about having an EBITDA loss trough sometime in the middle of the year. To that end, could you talk a little bit about the sequential EBITDA decline and if you do in fact think that we have definitely had trough here and then could you talk about your expectations for getting the business EBITDA positive at the corporate level as well? Thanks.

Thomas Scott

Thanks Mark. From an overall EBITDA loss trough perspective we expect to see continuing field level improvement through out the course of 2008. This is to show up as an EBITDA trough being -- the first quarter of 2008 was sequential improvement beginning in the second quarter to the end of the year.

With respect to the question regarding the overall EBITDA positive, our expectation is, this is going to be a 2009 objective and we believe if we are able to get the overall markets positive by the middle of 2008, we will still reach the same objective for the corporate wide by the middle of 2009.

Mark DeRussy - Raymond James

Okay, and then, may be, just a point of clarification, Tom, you talked about the average T-1 price may be going down in the future and I want to be sure that I understand what's going on there. Is that just a situation or is that being driven by the fact, you're going to have more metro sites in the mix, which by definition, are typically priced lower or are you seeing a decline in pricing in general?

Thomas Scott

It's a combination of a number of factor, that we talked about on all other calls. It's both a geographic mix, customer mix as well as some just general price compression but overall, it's a combination of all those factors.

Mark DeRussy - Raymond James

All right, thank you.

Thomas Scott

Thanks Mark.

Operator

Thank you. Our next question comes from the line of Seth Potter with Merriman Curhan Ford. Please go ahead.

Seth Potter - Merriman Curhan Ford

Hi, Good Morning can you talked about a little bit about, the CapEx site billed expectation? You mentioned of exiting fiscal year '08 of greater than a $100 million in cash. Can you walk through the quarterly site builds and give us a sense of what we should expect going forward?

 

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