Poor Progress At XM Satellite (XMSR)

Consumer Electronics

Published: October 25, 2007 7:25 am

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Analysts expected XM Satellite (XMSR) to loss $.44 on $287 million in revenue.

Revenue for the 2007 third quarter increased approximately 20 percent year over year to $287 million compared to $240 million in the 2006 third quarter. The company had an operating loss of $113 million, aned a net loss of $145 million, mostly due to interest expenses. This brought the EPS to a negative $.47.

The company’s churn rate fell slightly to 1.7% a month. Cost per additional subscriber rose to $116 and revenue per subscriber per month was flat at $10.17.

In the 2007 third quarter, XM recorded gross subscriber additions of 952 thousand and net subscriber additions of 315 thousand compared to 868 thousand gross additions and 286 thousand net subscriber additions in the 2006 third quarter.

Long-term debt stayed high at $1.474 billion.

Not a particularly good quarter, and, perhaps an argument in favor of the SIRI merger

Douglas A. McIntyre

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