For those of you thinking about XM - might want to wait
03-19-2002, 01:43 PM
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For those of you thinking about XM - might want to wait
XM Satellite's Auditor KPMG
Raises 'Going Concern' Worries
A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
NEW TECHNOLOGY DIFFICULT TO PROVE
The auditor for XM Satellite Radio Holdings raised doubts about the digital radio company's ability to continue as a going concern, though XM's chief executive said the company's financial position remains solid.
Shares of XM dropped $2, or 13%, to close at $13 Tuesday on the Nasdaq Stock Market.
In an annual report filed with the Securities and Exchange Commission Tuesday, KPMG LLP said it believes that XM Satellite, which makes radios that receive satellite programming in cars, is dependent on additional debt or equity financing to operate its business.
XM Satellite has sufficient funds to maintain itself until the end of 2002, but would need an injection of $40 million to $65 million to keep itself going through the end of the year, as well as additional funding after 2002, according to the filing. To date, the Washington-based company has raised about $1.5 billion of equity and debt net proceeds from investors and strategic partners.
XM Satellite's president and chief executive, Hugh Panero, said Tuesday that the company "sees no problem in accessing capital," and expects to secure funding for operations through 2002.
XM Satellite and its competitor, Sirius Satellite Radio Inc., have generated attention for offering a service for radio akin to what DirectTV does for television, in which customers pay a subscription fee for the ability to access up to 100 stations anywhere in the continental U.S.
Raises 'Going Concern' Worries
A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
NEW TECHNOLOGY DIFFICULT TO PROVE
The auditor for XM Satellite Radio Holdings raised doubts about the digital radio company's ability to continue as a going concern, though XM's chief executive said the company's financial position remains solid.
Shares of XM dropped $2, or 13%, to close at $13 Tuesday on the Nasdaq Stock Market.
In an annual report filed with the Securities and Exchange Commission Tuesday, KPMG LLP said it believes that XM Satellite, which makes radios that receive satellite programming in cars, is dependent on additional debt or equity financing to operate its business.
XM Satellite has sufficient funds to maintain itself until the end of 2002, but would need an injection of $40 million to $65 million to keep itself going through the end of the year, as well as additional funding after 2002, according to the filing. To date, the Washington-based company has raised about $1.5 billion of equity and debt net proceeds from investors and strategic partners.
XM Satellite's president and chief executive, Hugh Panero, said Tuesday that the company "sees no problem in accessing capital," and expects to secure funding for operations through 2002.
XM Satellite and its competitor, Sirius Satellite Radio Inc., have generated attention for offering a service for radio akin to what DirectTV does for television, in which customers pay a subscription fee for the ability to access up to 100 stations anywhere in the continental U.S.
03-19-2002, 06:35 PM
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i really don't get why anyone would pay...
$200+ for the unit, that is if your head is equipped with xm already. if your HU isn't then you can purchase an fm modulator so you can get the digital service (FM, digital, hmmmm). did i miss the point or what? if i have to use a fm modulator for my non-xm equipped HU, then how is the sound going to be ANY better. also i personally am not into paying ANY money for a radio service. i would rather pay for a mp3 internet service/ provider/ search engine database thingy monthly where i can choose exactly what i want to listen to and burn it to CD. maybe the auditor is realising this stuff also. i have seen the station lineup online, and yes there is some cool stuff, not all. any comments?
03-21-2002, 07:13 AM
#5
I'm waiting for the XM/Sirius combo units
The next headunits will be able to access either XM or Sirius, so if one goes under you can swap over to the other.
Otherwise, if you buy an XM unit and they go under, you're screwed.
Otherwise, if you buy an XM unit and they go under, you're screwed.
03-23-2002, 05:49 PM
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I was just thinking about getting the home unit to burn Minidiscs. . .
. . . my apartment complex has their own crappy cable system, so for me it's cheaper than going satellite (Direct TV) and then only getting 2 techno channels.
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