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

To: pcstel who wrote (2731)	7/26/2006 12:42:25 AM
From: pcstel	Respond to of 3386

Anyone ever seen any one person be SO WRONG so consistently? Message 18764073 To: pcstel who wrote (495) 3/27/2003 8:36:55 PM From: AliasNotAvailable Read Replies (1) of 2731 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. LOL!! I will give you one thing in your statement. I agree that I can not think of another subscriber-based business that has a cost structure that is any way comparable to XMSR's. Every other subscriber-based business that I know of at least a chance to achieve profitability at some point in the future. Too bad I can't say the same thing for SDAR's And so it goes, PCSTEL

To: pcstel who wrote (2731)	7/26/2006 9:31:21 AM
From: i-node	Read Replies (1) \| Respond to of 3386

Fair enough. Things didn't play out as I expected; I've said that. Still, that does not invalidate the entire business model. The added content cost as well as the out of pocket costs to renew the satellite infrastructure have taken a heavy toll; as did the Q4 expenses to counter Stern. And OEMs haven't ramped as quickly as one would like. All of this stuff creates problems for the company and for the industry. But if the subscribers ultimately show up, the model is not broken. And I continue to believe they will.