Sirius Slowing, Awaits Merger Decision (SIRI, XMSR)
February 26, 2008 by Douglas A. McIntyreSirius Satellite Radio (NASDAQ: SIRI) has posted earnings, and it showed -$0.11 EPS and $249.8 million in revenues. First Call had estimates at -$0.13 EPS and $267.4 million in revenues. It also showed free cash flows of $75.9 million in the quarter. The satellite radio provider also added 654,309 subscribers to end with 8.32 million subscribers at the end of 2007.
If you read the comments from CEO Mel Karmazin, you can see how the company is still waiting for a merger decision in its merger plans with XM Satellite Radio (NASDAQ: XMSR): "The pending merger with XM will offer unprecedented choice for consumers and create tremendous value for stockholders. We have made a very strong case for the merger to the government, received broad support from leading organizations and prominent individuals, and we look forward to a fast positive ruling from the government."
Interestingly enough, the company said it would only provide guidance after "merger approval" from the government.
Last night, Jim Cramer identified some of the congressmen that were holding up this merger. It is still too early to see any pre-market trades. XM Satellite Radio (NASDAQ: XMSR) also posts its earnings Thursday and you can see our full dueling preview.
Jon C. Ogg
February 26, 2008
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