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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR) -- Ignore unavailable to you. Want to Upgrade?

To: Sirius_Rich who wrote (2655)	7/6/2006 2:18:51 PM
From: i-node	Read Replies (1) \| Respond to of 3386

The satellite radio industry added 1M subs in Q2. Same as last Q2. Even after Sirius spent 3/4 billion on Stern. More than just XM disappoints. The satellite radio industry disappointed. If you take away SIRI's parking lot subscribers, account for the difference in churn for the two subscriber bases, and other minor differences in subscriber accounting, they each added about the same number of subscribers. And it isn't the kind of growth either of us would have expected before the fact. The only thing that is going to help at this point is OEMs pouring on the coal, and who knows whether that is apt to happen. For either.

To: Sirius_Rich who wrote (2655)	7/6/2006 10:26:02 PM
From: rrufff	Read Replies (1) \| Respond to of 3386

More downgrades on the way??? XM disappoints; Sirius outperforms Race for subscribers to satellite radio tightens up By David B. Wilkerson, MarketWatch Last Update: 5:24 PM ET Jul 6, 2006 CHICAGO (MarketWatch) -- XM Satellite Radio on Thursday reported second-quarter subscriber numbers that came in below expectations that analysts had already scaled back, while rival Sirius Satellite Radio posted net additions that outpaced forecasts. XMSR said it added 398,000 new net subscribers during the latest quarter, giving it a base of 6.89 million as of June 30. In May, the company had cut its 2006 subscriber forecast to 8.5 million from 9 million, citing "overall softness" in retail sales of its radio products during the second quarter. "As we previously indicated, subscriber growth in the second quarter was limited by product availability and overall softness in the retail channel," said Hugh Panero, chief executive of Washington-based XM, in a statement. Most analysts had been looking for XM to add about 430,000 subscribers in the quarter, compared with the year-ago figure of 647,000, according to Oppenheimer & Co.'s Thomas Eagan. David Kestenbaum, analyst at Morgan Joseph & Co., had been expecting XM to pick up 501,000 new customers and called the company's actual net additions "disappointing." Jason Helfstein at CIBC World Markets had been anticipating net additions of 401 million. "Also noteworthy was the company's reluctance to reiterate its belief that it would reach the year-end sub guidance of 8.5 million," Kestenbaum told clients, adding that he is concerned that XM will reduce that 2006 estimate when it reports second-quarter financial results on July 27. Eagan said he doesn't expect subscriber additions to rise substantially in the third quarter, partly because General Motors (GMGeneral Motors Corporation SIRI ) , meanwhile, added 600,460 net subscribers during the second quarter, finishing the period with 4.68 million. The total represents a 158% improvement in subscribers over the same quarter a year ago. Helfstein had been expecting customer additions of 561,000, while Stifel Nicolaus & Co. analyst Kit Spring had forecast signups of 550,000, an estimate he characterized as "roughly in line" with consensus estimates. Spring also reiterated his buy rating on Sirius, ascribing the company's outperformance to better-than-expected activations of factory-installed radios in vehicles. Sirius radios are offered in cars and trucks from such manufacturers as Ford (FFord Motor Company Oppenheimer's Eagan said he prefers Sirius shares over XM because, in his view, Sirius management, led by Chief Executive Mel Karmazin, has "shown its ability to more strategically negotiate industry obstacles and is less likely to disappoint shareholders with guidance reduction." XM's shares fell 38 cents, or 2.6%, to close at $14.11, while Sirius rose 1.1% to close at $4.53. David B. Wilkerson is a reporter for MarketWatch in Chicago.