To: i-node who wrote (2262 ) 2/18/2006 10:04:28 PM From: pcstel Read Replies (1) | Respond to To try to base your argument on what CPGA was a couple years ago is a bit disingenuous. But when the CPGA gets to a sub-$90 level (where XM's has been and where it is likely to return in Q1) Nobody has suggested these companies won't suffer huge losses during the first several years, and they, of course, they have If one looks closely, XM's variable unit costs have dropped nicely over the last two years, as well, bringing the contribution margin within reach of management's original estimates. "XM Satellite Radio Holdings Posts Wider Fourth-Quarter Loss; Director Quits, Warning of 'Crisis'" lost $270.4 million, or $1.22 per share, after dividends for preferred stockholders, in the October-December period. In the same period a year earlier, the loss was $190.4 million, or 93 cents per share. Your entire thesis has been "CPGA too high, ARPU too low, "Of particular concern to investors was the unexpected departure of Pierce J. Roberts Jr. from XM's board of directors, who said in his resignation letter that he was "troubled" by the company's current path. Roberts, the former chief telecom banker at Bear Stearns, had served on the board's audit, compensation and nominating committees. He had been a director for five years.
