SIRI, SIRI News, SIRI Quote and SIRI Stock

SIRI provides satellite radio services in the United States and Canada. The company offers a programming lineup of 117 channels to subscribers, which include 63 channels of commercial-free music and 54 channels of sports, news, talk, entertainment, and traffic and weather.

It also provides music channels that offer music genres, ranging from rock, pop and hip-hop to country, dance, jazz, Latin, and classical; channels of sports; talk and entertainment channels; comedy channels; and religious channels.

As of December 31, 2008, SIRI had 19,003,856 subscribers. In addition, it provides music services for commercial establishments; music and comedy channels to mobile phone users; and music channels and select non-music channels over the Internet; a suite of data services; services that offers graphic information; and various real-time weather services, as well as operates a television service, which provides content designed primarily for children in the backseat of vehicles.

Further, SIRI engages in the distribution of satellite radios for use in cars, trucks, homes, offices, boats, or other locations. SIRI distributes its satellite radios primarily through automakers, retailers, and Websites, as well as offers to customers of rental car companies.

Further, it provides home units that offer satellite services to home and commercial audio systems and products that provide access to the Internet radio services in the home without the personal computer. SIRI was formerly known as Sirius Satellite Radio Inc. and changed its name to Sirius XM Radio Inc. in August 2008. SIRI was founded in 1990 and is headquartered in New York, New York.

Financial Summary

For the Quarter ending June 30, 2009, their revenue grew 1%, or $6,784, in the three months ended June 30, 2009 compared to the same period in 2008. This revenue growth was driven by a 1% growth in weighted average subscribers, the sale of “Best of” programming and rate increases on their multi-subscription and Internet packages resulting in the growth of Subscriber revenue by 3%, or $18,668, in the three months ended June 30, 2009 compared to the same period in 2008.

Advertising revenue decreased 33%, or $6,200, in the three months ended June 30, 2009 compared to the same period in 2008. The decrease in advertising revenue was driven by the decline in the national radio advertising market and the current economic environment.

Equipment revenue decreased 29%, or $4,519, in the three months ended June 30, 2009 compared to the same period in 2008. The decrease in equipment revenue was driven by declines in sales through their direct to consumer distribution channel.

Other revenue decreased 14%, or $1,165, in the three months ended June 30, 2009 compared to the same period in 2008. The overall increase in revenue, combined with a decrease of 28%, or $186,553, in adjusted operating costs (total operating expense excluding restructuring, impairments and related costs, depreciation and amortization and share-based payment expense), resulted in improved adjusted income (loss) from operations of $132,219 in the three months ended June 30, 2009 compared to ($61,118) in the same three month period in 2008.

Satellite and transmission costs decreased 27%, or $6,808, in the three months ended June 30, 2009 compared to the same period in 2008 due to reductions in maintenance costs, repeater lease expense, and personnel costs.

Programming and content costs decreased 14%, or $14,164, in the three months ended June 30, 2009 compared to the same period in 2008, due mainly to reductions in personnel and on-air talent costs as well as savings on certain content agreements.

Revenue share and royalties decreased by 5%, or $5,638. Customer service and billing costs remained flat with a decrease of $182 in the three months ended June 30, 2009 compared to the same period in 2008.

Cost of equipment decreased by 49%, or $7,651, in the three months ended June 30, 2009 compared to the same period in 2008 as a result of a decrease in the company’s direct to customer sales and lower inventory write-downs.

Sales and marketing costs decreased 53%, or $54,716, and have decreased as a percentage of revenue to 8% from 17% in the three months ended June 30, 2009 compared to the same period in 2008 due to reduced advertising and cooperative marketing spend, as well as, reductions to personnel costs and third party distribution support expenses.

Subscriber acquisition costs decreased 46%, or $69,597, and decreased as a percentage of revenue to 13% from 25% in the three months ended June 30, 2009 compared to the same period in 2008. This improvement was driven by fewer OEM installations relative to gross subscriber additions, decreased production of certain radios, lower OEM subsidies and lower aftermarket inventory reserves as compared to the three months ended June 30, 2008. Subscriber acquisition costs also decreased as a result of the 35% decline in gross additions during the three months ended June 30, 2009 compared to the three months ended June 30, 2008.

General and administrative costs decreased 33%, or $22,226, mainly due to the absence of certain legal and regulatory charges incurred in 2008 and lower personnel costs.

Engineering, design and development costs decreased 35%, or $5,571, in the three months ended June 30, 2009 compared to the same period in 2008, due to lower costs associated with manufacturing of radios, OEM tooling and manufacturing, and personnel.

Restructuring, impairments and related costs increased $27,000 mainly due to a loss of $24,196 on capitalized installment payments, which are expected to provide no future benefit due to the counterparty’s bankruptcy filing, for the launch of a satellite.

Other expenses increased 285%, or $146,775, in the three months ended June 30, 2009 compared to the same period in 2008 driven mainly by the loss on extinguishment of debt and credit facilities of $107,756, and an increase in interest expense of $53,354, offset by an increase of $12,795 in gain on investments. The loss on the extinguishment of debt and credit facilities was incurred on the full repayment of XM’s Amended and Restated Credit Agreement and its Second-Lien Credit Agreement. Interest expense increased due primarily to the issuance of XM’s 13% Senior Notes due 2013 and the 7% Exchangeable Senior Subordinated Notes due 2014 in the third quarter of 2008.

Analyst Consensus

EPS

Quarter	Actual	Mean	High	Low	# of Estimates
Last Q (Jun. 09)	-0.01	-0.01	-0.01	-0.02	4
Current Q (Sep. 09)		-0.02	-0.01	-0.02	4
Next Q (Dec. 09)		-0.02	-0.02	-0.02	4
Current FY (Dec. 09)		-0.09	-0.03	-0.12	4

Investment Highlights

They broadcast in the United States their music, sports, news, talk, entertainment, traffic and weather channels for a subscription fee through their proprietary satellite radio systems — the SIRIUS system and the XM system. On July 28, 2008, their wholly owned subsidiary, Vernon Merger Corporation, merged (the “Merger”) with and into XM Satellite Radio Holdings Inc. and, as a result, XM Satellite Radio Holdings Inc. is now their wholly owned subsidiary. The SIRIUS system consists of four in-orbit satellites, approximately 120 terrestrial repeaters that receive and retransmit signals, satellite uplink facilities and studios. The XM system consists of four in-orbit satellites, over 700 terrestrial repeaters that receive and retransmit signals, satellite uplink facilities and studios. Subscribers can also receive certain of their music and other channels over the Internet.

SIRI satellite radios are primarily distributed through automakers (“OEMs”), retailers and their websites. They have agreements with every major automaker to offer SIRIUS or XM satellite radios as factory or dealer-installed equipment in their vehicles. SIRIUS and XM radios are also offered to customers of rental car companies.

SIRI subscriber totals include subscribers under their regular pricing plans; discounted pricing plans; subscribers that have prepaid, including payments either made or due from automakers for prepaid subscriptions included in the sale or lease price of a new vehicle; certain radios activated for daily rental fleet programs; subscribers to SIRIUS Internet Radio and XM Radio Online, their Internet services; and certain subscribers to their weather, traffic, data and video services.

SIRI's primary source of revenue is subscription fees, with most of their customers subscribing on an annual, semi-annual, quarterly or monthly basis. They offer discounts for prepaid and long-term subscriptions as well as discounts for multiple subscriptions. They also derive revenue from activation fees, the sale of advertising on select non-music channels, the direct sale of satellite radios, components and accessories, and other ancillary services, such as their Backseat TV, data and weather services.

In certain cases, automakers include a subscription to their radio services in the sale or lease price of vehicles. The length of these prepaid subscriptions varies, but is typically three to twelve months. In many cases, SIRI has receive subscription payments from automakers in advance of the activation of their service. SIRI also reimburse various automakers for certain costs associated with satellite radios installed in their vehicles.

They also have an interest in the satellite radio services offered in Canada. Subscribers to the SIRIUS Canada service and the XM Canada service are not included in their subscriber count.

Technical Analysis

MA 30 days down trend greater than 4 days (30 Days MA break out)

This is a negative signal.

If the price bars are below the moving average it could become resistance and stocks tend to bounce off of it and continue going down.

MA 30 days flat trend at least 4 days (30 Days MA break out)

This is a wait signal.

A flat trend can indicate that the stock in preparing for a correction and it could begin to go down.

MA 30 days flat trend starts 4 days ago and is longer than down trend (30 Days MA break out)

This is a wait signal.

A flat trend can indicate that the stock in preparing for a correction and it could begin to go down.

MACD upward crossed zero-line 3 days ago and going downward now (MACD 8-17-9)

This is no longer a positive signal. It is not necessarily a negative sign yet until it crosses the signal line and we get a red arrow. This position indicates weakening buying interest. It is not uncommon to see the stock trend flat or down slightly when the MACD goes into decline.

A conservative investor may consider the MACD decline as a negative signal in a bearish market environment. This is especially relevant if profits have already been made.

Stochastics Value upward crossed 25 more than 2 days ago, now between 25 and 75 line (Stochastics 14-5 breakout)

Strong positive signal when combined with a green arrow on the MACD. Make sure the stock has not moved more than 10% between the green arrow on the stochastics and the green arrow on the MACD.

Don't forget that you can get a phantom green arrow in stochastics. This happens when the stochastics trend line reverses direction and heads back up before hitting the 25% line.

Today's volume is greater than the average volume of previous 10 days, but less than 150% of it. (Volume)

On its own this kind of volume is not a strong positive signal but does lend some strength to the other positive signals we may be seeing.

In a down trending market we need higher than average volume of at least 150% to be strong.

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