XM Satellite Radio Holdings Inc. (XMSR) Message Board

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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR)

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To: pcstel who wrote (495)	3/27/2003 8:36:55 PM
From: i-node	Read Replies (1) of 3386

Is that what I said? Or are you making things up? Yes, it is what you said. No, I'm not making it up; at least that's my interpretation: Message 18274473 Revenue 9.0 million A net loss of 156M is meaningless. What matters is subs. Period. If subs grow (at an alarmingly strong rate, as they have), then profits will follow. And sub growth has continued to proceed precisely on target; management has not yet missed a projection, the financing came through Again, we argued this all months ago and we don't need to rehash it. I think you may have some limited knowledge of some other subscriber based business and are imputing a similar cost structure on XMSR. There is not another subscriber-based business, at least that I can think of, that has a cost structure that is in any way comparable to XMSR's. Further, the equipment subsidies are continuing to fall, and clearly will continue to do so. A time will come when XM generates fees by licensing its technology to those who want to build compatible gear. The subsidies are a cost of getting the business running.

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