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Sirius Satellite Radio (SIRI) is trading up 3.2% at $4.22 pre-market after reporting narrower losses and higher subscribers.It posted losses of -$0.12 on EPS and revenues of $167.1 million, but estimates were -$0.14 and $167 million. On an adjusted basis pre-options the losses would have been -$0.09 on non-GAAP EPS. Sirius ended with more than 5.1 million paying subscribers after adding some 441,101 subscribers in the quarter. It reaffirmed a projected 6.3 million subscribers by year-end and put its churn rate at about 1.8% (churn was 2% for this quarter). It also put 2006 revenues at roughly $615 million, although street estimates are $623 million; and it expects an operating loss of $565 million on an adjusted basis.Its subscriber acquisition costs were $80.9 million in the quarter, although it attributed the higher costs to radio shipments and increases in certain new chip sets needed to support subscriber additions.Sirius did note that it may reach positive cash flow in the fourth quarter, and put 2007 revenues at about $1 Billion. Mel Karmazin said that only Clear Channel and CBS Radio will be larger on the terrestrial side after next year.Shares of XM Satellite Radio (XMSR) are down 0.4% at $13.44 pre-market on thin volume, but it rose sharply after its own earnings on Monday. SIRI closed up almost 7% after XMSR reported earnings.Jon C. OggNovember 8, 2006