XM (XMSR) lost another $255 million in Q4 2006 on revenue of $257 million up 45% from last year. But, this was a considerable slowing from the full-year growth of 67%. The company said it had positive cashflow in the fourth quarter.
The huge loss and slowing revenue growth were further evidence of what the company needs a merger with rival Sirius (SIRI) although with new competition like the Apple (AAPL) iPod, there is no guarantee that the combination of the radio satellite companies will build a media powerhouse.
XM’s long-term debt is now about $1.3 billion and cash on the balance sheet has dwindled from $710 million at the end of 2005 to $218 million at the end of 2006.
If the merger does not work, XM may have to raise more money.
Douglas A. McIntyre
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