SIRIUS XM Manages Gains & Raises Guidance (SIRI)

SIRIUS XM Radio (Nasdaq: SIRI) posted a pro forma revenue gain of 5% from last year of $605.5 and posted $108.8 million in pro forma adjusted income from operations (up $179 million year over year). The satellite radio operator also noted that cash operating costs fell 23%.  More importantly, Siriusis raising its 2009 guidance on the metric of adjusted income from operations.

As noted in the update, shares popped up early on the news but have come back down
Keep in mind that this is including the notion of slower automobile sales and a 2% sequential decline in satellite radio subscribers.  The company said that it is well positioned to exceed $350 million in adjusted income from operations in 2009, above the prior guidance that the numbers would exceed $300 million.

Sirius XM ended first quarter 2009 with 18,599,434 subscribers, up 3% from 17,974,531 pro forma subscribers at the end of first quarter 2008 and down 2% from fourth quarter 2008 subscribers of 19,003,856.

Its pro forma average revenue per subscriber was $10.43, compared to $10.48 in the first quarter 2008.

The pro forma self-pay monthly customer churn was 2.2% in the first quarter 2009, compared to 2.1% for Sirius and 1.8% for XM in the first quarter 2008.

The pro forma net loss improved 73% to -$62.9 million, compared to a pro forma net loss of -$233.4 million for Q1-2008.

Here are the percentages in cost cuttin measures: Satellite and transmission costs decreased 23%, Programming and content costs decreased 10%, Cost of equipment decreased by 50%, Sales and marketing costs decreased 35%, Subscriber acquisition costs decreased 48%, General and administrative costs decreased 32%, Engineering and design and development costs decreased 48%.

STORY UPDATED at 8:18 AM EST: SIRIUS XM shares originally popped over 15% pre-market to $0.61 in early indications after the news.  Shares closed at $0.525 yesterday, and now shares are down at $0.48 in pre-market trading.

SIRIUS XM is one of those stocks that could trade up and down by 10% many times in a day.  It just depends on who says what inside and outside of the company.

JON C. OGG