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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR)
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To: verdad who wrote (338)11/18/2002 8:12:09 PM
From: i-node  Read Replies (1) of 3386
 
Total subscribers has increased 64,836 for the qtr. Impressive growth percentage;

Right; but the next couple of quarters will show much faster growth due to the wide availability of factory installed equipment in new cars.

however, the cost of adding a subscriber seems to be somewhere around $217 per sub.

I'm not sure where one would get such a figure; perhaps you could explain where yours came from. The company's financial statements do not provide sufficient detail for computing the cost of acquiring a subscriber; and further, whatever costs there are will be transitory in nature. As a practical matter, the cost of adding a subscriber has only to do with any rebates due to GM or others under agreements that were necessary to insure production of the hardware. These costs go away over time.

Another worrisome matter was the disclaimer regarding "consolidated EBITDA losses" that was attached to XMSR's THIRD QTR 2002 FINANCIAL RESULTS PRESS RELEASE:

I don't know what you find worrisome about this boilerplate provision. It is simply stating the obvious: That future results could vary from projections. If they don't get financing, they'll go broke.

Have the financial reports been 'legally' manipulated to create a more favorable outlook to entice investors and underwriters?

Of course not. There is absolutely nothing in this paragraph that would indicate such a thing. It's boilerplate.

According to some projections, XMSR's losses might accelerate with subscriber adds, while their current business model may be untenable.

This is ridiculous. Do you have ANY hard data to support this absurd allegation?
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