UPDATE 2-Clearwire revenue rises but cash declines

* Sees cash fall to $700 mln from $848 mln* Shares up 18 percent to $1.53NEW YORK, Oct 13 (Reuters) - Clearwire Corp said it expects to report third-quarter revenue more than doubled from a year earlier on record subscriber growth, sending its shares up 18 percent.But the wireless service provider, majority-owned by Sprint Nextel , also said its cash and cash equivalents fell to $700 million on Sept. 30 from $848 million at the end of the second quarter.Investors have become increasingly nervous in the past week about the future of Clearwire, which is looking for almost $1 billion in additional funding to support operations and to upgrade its network to stay competitive.Clearwire said on Thursday it is enjoying strong growth and expects to report net wholesale subscriber additions of 1.9 million for the third quarter, up 29 percent from the second quarter.The company estimated its subscriber count at 9.5 million at the end of the third quarter. In August it raised its 2011 year-end target to 10 million subscribers from 9.5 million.Clearwire said it expects to report third-quarter revenue of $332 million, up 126 percent from a year earlier.Clearwire has benefited in the past year from strong growth at Sprint, which depends on Clearwire’s network for its high-speed wireless offerings.But investors fled Clearwire’s stock on Friday after Sprint said it could benefit from a Clearwire bankruptcy and that it would stop selling phones based on Clearwire’s WiMax network at the end of 2012.Clearwire shares lost about a third of their value that day.Thursday’s news helped recoup some of those losses. Clearwire shares rose 18 percent to $1.53 in morning trading on Nasdaq.The company said Chief Financial Officer Hope Cochran would deliver the updated financial estimates at an investor conference later Thursday.The company said it still must finalize its quarterly results.Clearwire has said it wants to raise $300 million to support its operations, and $600 million to upgrade its network to catch up with competitors.