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XM Loses Another $255 Million

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…

By Douglas A. McIntyre
Published February 26, 2007, 7:16am ET · 1 min read

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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

Contact [email protected] for any questions or corrections.

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Douglas A. McIntyre

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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