Sirius Xm News

Have a listen to this audio clip from the Bubba The Love Sponge Show.

Bubba is pissed that Sirius dumped a portion of his show. He also said that this is the reason he will not be returning.

He sounds pretty pissed and also said that Sirius is Censoring him more than the FCC.

Listen towards the end when he talk to Tim Sabean (Stern Program Director) causing him to hang up the phone.

Hopefully this is not a sign of things to come. This really wont help Sirius gain more listeners.
More info if anything changes.

Thoughts?

The U.S. Federal Communications Commission may reach a decision on Sirius Satellite Radio Inc.’s proposed takeover of XM Satellite Radio Holdings Inc. by the end of June, Chairman Kevin Martin said.

“I still think the commission could act by the end of the
second quarter,” Martin told reporters at a press conference in
Washington today. The combination of the two U.S. pay-radio
companies wasn’t placed on the agenda for the commission’s
regular monthly meeting on June 12.

Commissioners are privately debating what conditions to
demand in exchange for approving the transaction. Some U.S.
lawmakers and interest groups are asking that the combined
entity allocate part of its spectrum to competitors including
minority-owned broadcasters, and that it be required to let any
manufacturer make receivers to boost consumer choice.

Martin declined to discuss details of the commission’s
deliberations.

The FCC isn’t required to vote by a specific date, and may
delay the matter beyond June if commissioners can’t reach a
decision. The U.S. Justice Department approved the combination
on March 24, saying competition from broadcast radio and
digital-music players would prevent price increases.

Via:Bloomberg

Could this really be happening? I’m not holding my breath but at least this is the most solid news I have heard from anyone, including the FCC yet.

I will be keeping my fingers crossed and my eyes open for any more news on this.

* Revenue of $270.4 Million, Up 33% Year Over Year
* Total Subscribers of More Than 8.6 Million, Up 31% Year Over Year
* Record First Quarter Gross Subscriber Additions - Exceed 1 Million
* Adjusted Loss From Operations Improves 55%

SIRIUS Satellite Radio today announced first quarter
2008 financial results, including a 33% increase in revenue to $270.4
million, total subscribers in excess of 8.6 million and a 55% decrease
in the adjusted loss from operations.

“SIRIUS continues to demonstrate robust subscriber and revenue
growth, along with strong cost discipline and significant improvement
in our bottom line,” said Mel Karmazin, CEO of SIRIUS. “Compared with a
year ago, first quarter 2008 subscribers grew 31%, revenue grew 33%,
while cash operating costs only grew 8%, leading to a 55% decline in
our adjusted loss from operations.”

“We await the FCC decision on our pending merger with XM, and we are eager to deliver the strong benefits
of the combined company to our subscribers and stockholders.”

SIRIUS
ended first quarter 2008 with 8,644,319 subscribers, up 31% from
6,581,045 subscribers at the end of first quarter 2007. Retail
subscribers increased 10% in the first quarter 2008 to 4,643,215 from
4,234,804 at the end of first quarter 2007. OEM subscribers increased
72% in the first quarter 2008 to 3,986,818 from 2,323,683 at the end of
first quarter 2007. During the first quarter 2008, SIRIUS added 322,534
net subscribers and achieved a 52% share of satellite radio net
subscriber additions.

Total
revenue for the first quarter 2008 increased to $270.4 million, up 33%
from first quarter 2007 total revenue of $204.0 million. Average
monthly revenue per subscriber (or “ARPU”) was $10.42 in first quarter
2008 as compared with $10.46 for first quarter 2007. First quarter 2008
average all-in customer churn was 2.7%. SAC per gross subscriber
addition was $91 in first quarter 2008, an improvement over first
quarter 2007’s SAC per gross subscriber addition of $101.

SIRIUS
reported a first quarter 2008 net loss of ($104.1) million, or ($0.07)
per share, an improvement of 28% over first quarter 2007 net loss of
($144.7) million, or ($0.10) per share. The adjusted loss from
operations for first quarter 2008 improved 53% to ($39.5) million, as
compared to the adjusted loss from operations of ($84.0) million in
first quarter 2007.

2008 OUTLOOK

Following approval of
the pending merger with XM by the Federal Communications Commission,
SIRIUS will provide guidance for 2008.

RESULTS OF OPERATIONS

The
discussion of operating expenses below excludes the effects of
stock-based compensation. SIRIUS believes this presentation improves
the transparency of disclosure and is consistent with the way operating
results are evaluated by management.

FIRST QUARTER 2008 VERSUS FIRST QUARTER 2007

For the first
quarter of 2008, SIRIUS recognized total revenue of $270.4 million
compared to $204.0 million for the first quarter of 2007. This 33%, or
$66.4 million, increase in revenue was driven by a $64.8 million
increase in subscriber revenue resulting from the net increase in
subscribers of 2,063,274 from the first quarter of 2007.

The
company’s adjusted loss from operations decreased $44.5 million to
($39.5) million for the first quarter of 2008 from ($84.0) million for
the first quarter of 2007 (refer to the reconciliation table of net
loss to adjusted loss from operations). This decrease was driven by the
increase in total revenue of $66.4 million offset by a $21.8 million
increase in non-operating expenses.

Satellite and transmission expenses decreased $0.3 million to $7.0 million for the first quarter of 2008
compared to $7.3 million for the first quarter of 2007 as a result of lower maintenance expenses in the first of quarter 2008.

Programming
and content expenses increased $1.8 million to $58.9 million for the
first quarter of 2008 from $57.1 million for the first quarter of 2007.
The increase was primarily attributable to higher compensation-related
costs for additions to headcount.

Revenue share and royalties
increased $15.2 million to $42.3 million for the first quarter of 2008
from $27.1 million for the first quarter of 2007. This increase was
attributable to the determination by the Copyright Royalty Board in
January 2008 of the royalty rate under the statutory license covering
the performance of sound recordings. The 33% growth in the company’s
revenues also contributed to the increase in revenue share and
royalties.

Customer service and billing expenses increased $4.9
million to $26.6 million for the first quarter of 2008 from $21.7
million for the first quarter of 2007. The increase was primarily
attributable to higher call center operating costs necessary to
accommodate the increase in the company’s subscriber base. Customer
service and billing expenses per average subscriber per month declined
9.0% to $1.05 for the first quarter of 2008 from $1.15 for the first
quarter of 2007.

Sales
and marketing expenses decreased $2.2 million to $33.2 million for the
first quarter of 2008 from $35.4 million for the first quarter of 2007.
This decrease was primarily attributable to lower advertising and
reduced cooperative marketing spend with the company’s distributors
compared to the year-ago first quarter.

Subscriber acquisition
costs (SAC) decreased $8.4 million, or 9%, to $89.8 million for the
first quarter of 2008 from $98.2 million for the first quarter of 2007.
This decrease was primarily attributable to production efficiencies and
a higher average retail selling price, offset by increased OEM unit
production.

SAC
per gross subscriber addition decreased 10% to $91 for the first
quarter of 2008 from $101 for the first quarter of 2007. The decrease
was driven by lower per unit subsidies due to production efficiencies
and a higher average retail selling price, offset by a higher mix of
OEM gross additions.

General and administrative expenses
increased $13.4 million to $36.8 million for the first quarter of 2008
from $23.4 million for the first quarter of 2007. The increase was
primarily the result of higher litigation related costs and
compensation-related costs to support the growth of our business.

Engineering,
design and development expenses decreased $3.9 million to $7.5 million
for the first quarter of 2008 from $11.4 million for the first quarter
of 2007. This decrease was attributable to reduced OEM and product
development costs.

SIRIUS
reported a net loss of ($104.1) million, or ($0.07) per share, for the
first quarter of 2008 compared to a net loss of ($144.7) million, or
($0.10) per share, for the first quarter of 2007.

<br />                 SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES<br />                           SUBSCRIBER DATA, METRICS<br />                    AND OTHER NON-GAAP FINANCIAL MEASURES<br />               (Dollars in thousands, unless otherwise stated)<br /><br />    Subscriber Data:<br />                                              For the Three Months<br />                                                 Ended March 31,<br />                                             2008              2007<br /><br />     Beginning subscribers                8,321,785         6,024,555<br />     Net additions                          322,534           556,490<br />       Ending subscribers                 8,644,319         6,581,045<br /><br />       Retail                             4,643,215         4,234,804<br />       OEM                                3,986,818         2,323,683<br />       Hertz                                 14,286            22,558<br />     Ending subscribers                   8,644,319         6,581,045<br /><br />       Retail                                 2,506           192,978<br />       OEM                                  321,186           364,674<br />       Hertz                                 (1,158)           (1,162)<br />     Net additions                          322,534           556,490<br /><br /><br />     Metrics:<br />                                               For the Three Months<br />                                                  Ended March 31,<br />                                            2008              2007<br /><br />     Gross subscriber additions           1,003,422           988,458<br />     Deactivated subscribers                680,888           431,968<br />     Average monthly churn (1)(6)               2.7%              2.3%<br />     SAC per gross subscriber<br />      addition (3)(6)                           $91              $101<br />     Customer service and billing<br />      expenses per average<br />      subscriber (3)(6)                       $1.05             $1.15<br />     Total revenue                         $270,350          $204,037<br />     Free cash flow (4)(6)                $(186,535)        $(146,715)<br /><br />     Monthly ARPU:<br />       Average monthly subscriber<br />        revenue per subscriber<br />        before the effects of<br />        Hertz subscribers and rebates        $10.09            $10.30<br />       Effects of Hertz subscribers            0.04              0.04<br />       Effects of rebates                     (0.04)            (0.24)<br />       Average monthly subscriber<br />        revenue per subscriber                10.09             10.10<br />       Average monthly net<br />        advertising revenue per<br />        subscriber                             0.33              0.36<br />       ARPU                                  $10.42            $10.46<br /><br /><br /><br />                 SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES<br />                           SUBSCRIBER DATA, METRICS<br />              AND OTHER NON-GAAP FINANCIAL MEASURES - CONTINUED<br />               (Dollars in thousands, unless otherwise stated)<br /><br />     Adjusted Loss from Operations:<br />                                              For the Three Months<br />                                                 Ended March 31,<br />                                              2008              2007<br /><br />      Net loss                            $(104,118)        $(144,745)<br />        Depreciation                         26,906            26,786<br />        Stock-based compensation             22,262            24,260<br />        Other non operating expense          14,950             9,145<br />        Income tax expense                      543               555<br />       Adjusted loss from<br />        operations (7)                     $(39,457)         $(83,999)<br /><br /><br />      Adjusted Net Loss:<br />                                              For the Three Months<br />                                                 Ended March 31,<br />                                             2008              2007<br /><br />      Net loss                            $(104,118)        $(144,745)<br />        Stock-based compensation             22,262            24,260<br />      Adjusted net loss                    $(81,856)        $(120,485)<br />      Net loss per share (basic<br />       and diluted) (8)                      $(0.07)           $(0.10)<br />      Weighted average common<br />       shares outstanding<br />       (basic and diluted)                1,475,496         1,457,011<br /><br /><br /><br />                 SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES<br />                           SUBSCRIBER DATA, METRICS<br />              AND OTHER NON-GAAP FINANCIAL MEASURES - CONTINUED<br />               (Dollars in thousands, unless otherwise stated)<br /><br />    Condensed Consolidated Statements of Operations:<br /><br />                                              For the Three Months<br />                                                 Ended March 31,<br />                                            2008               2007<br /><br />     Total revenue                        $270,350           $204,037<br />     Operating expenses<br />      (excludes depreciation and<br />      stock-based compensation<br />      shown separately below):<br />       Satellite and transmission            7,025              7,330<br />       Programming and content              58,903             57,063<br />       Revenue share and royalties          42,320             27,134<br />       Customer service and billing         26,646             21,654<br />       Cost of equipment                     7,588              6,458<br />       Sales and marketing                  33,227             35,352<br />       Subscriber acquisition costs         89,810             98,237<br />       General and administrative           36,780             23,403<br />       Engineering, design and development   7,508             11,405<br />       Depreciation                         26,906             26,786<br />       Stock-based compensation             22,262             24,260<br />     Total operating expenses              358,975            339,082<br />     Loss from operations                  (88,625)          (135,045)<br />       Other expense                       (14,950)            (9,145)<br />     Loss before income taxes             (103,575)          (144,190)<br />       Income tax expense                     (543)              (555)<br />     Net loss                            $(104,118)         $(144,745)<br /><br /><br /><br />                 SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES<br />                    CONSOLIDATED STATEMENTS OF OPERATIONS<br />                   (In thousands, except per share amounts)<br /><br />                                                      For the Three Months<br />                                                        Ended March 31,<br />                                                    2008              2007<br />     Revenue:<br />       Subscriber revenue, including<br />        effects of rebates                        $255,640          $190,796<br />       Advertising revenue, net of agency fees       8,408             6,721<br />       Equipment revenue                             6,063             4,671<br />       Other revenue                                   239             1,849<br />     Total revenue                                 270,350           204,037<br />     Operating expenses (excludes<br />      depreciation shown separately below) (1):<br />       Cost of services:<br />         Satellite and transmission                  7,822             7,986<br />         Programming and content                    61,692            59,998<br />         Revenue share and royalties                42,320            27,134<br />         Customer service and billing               26,922            21,853<br />         Cost of equipment                           7,588             6,458<br />       Sales and marketing                          38,467            40,996<br />       Subscriber acquisition costs                 89,824           100,117<br />       General and administrative                   48,778            35,343<br />       Engineering, design and development           8,656            12,411<br />       Depreciation                                 26,906            26,786<br />     Total operating expenses                      358,975           339,082<br />       Loss from operations                        (88,625)         (135,045)<br />     Other income (expense):<br />       Interest and investment income                2,802             6,042<br />       Interest expense, net of amounts<br />        capitalized                                (17,675)          (15,192)<br />       Other (expense) income                          (77)                5<br />     Total other expense                           (14,950)           (9,145)<br />       Loss before income taxes                   (103,575)         (144,190)<br />       Income tax expense                             (543)             (555)<br />         Net loss                                $(104,118)        $(144,745)<br />     Net loss per share (basic and diluted)         $(0.07)           $(0.10)<br />     Weighted average common shares<br />      outstanding (basic and diluted)            1,475,496         1,457,011<br /><br />    (1) Amounts related to stock-based<br />        compensation included in other<br />        operating expenses were as follows:<br /><br />        Satellite and transmission                    $797              $656<br />        Programming and content                      2,789             2,935<br />        Customer service and billing                   276               199<br />        Sales and marketing                          5,240             5,644<br />        Subscriber acquisition costs                    14             1,880<br />        General and administrative                  11,998            11,940<br />        Engineering, design and development          1,148             1,006<br />        Total stock-based compensation             $22,262           $24,260<br /><br /><br /><br />                 SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES<br />                              BALANCE SHEET DATA<br />                            (Dollars in thousands)<br /><br />                                                          As of<br />                                            March 31, 2008   December 31, 2007<br />                                              (unaudited)<br />     Cash, cash equivalents and<br />      marketable securities                     $252,969          $439,289<br />     Restricted investments                       56,000            53,000<br />     Working capital                            (741,218)         (394,989)<br />     Total assets                              1,469,823         1,694,149<br />     Total debt                                1,282,743         1,314,418<br />     Total liabilities                         2,309,257         2,486,886<br />     Accumulated deficit                      (4,503,090)       (4,398,972)<br />     Stockholders' deficit                      (839,434)         (792,737)<br /><br /><br /><br />                 SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES<br />                    CONSOLIDATED STATEMENTS OF CASH FLOWS<br />                            (Dollars in thousands)<br /><br />                                                     For the Three Months<br />                                                        Ended March 31,<br />                                                    2008               2007<br />     Cash flows from operating activities:<br />       Net loss                                  $(104,118)         (144,745)<br />       Adjustments to reconcile net loss<br />        to net cash used in operating<br />        activities:<br />         Depreciation                               26,906            26,786<br />         Non-cash interest expense                   1,004               754<br />         Provision for doubtful accounts             2,560             2,088<br />         Gain on disposal of assets                    -                  (4)<br />         Stock-based compensation                   22,262            24,260<br />         Deferred income taxes                         543               555<br />       Changes in operating assets and<br />        liabilities:<br />         Accounts receivable                        18,765             6,639<br />         Inventory                                   4,193              (473)<br />         Receivables from distributors              (9,988)           (7,569)<br />         Prepaid expenses and other current<br />          assets                                    14,256            (9,173)<br />         Other long-term assets                      3,256               (23)<br />         Accounts payable and accrued expenses    (116,741)          (47,811)<br />         Accrued interest                          (11,885)          (11,763)<br />         Deferred revenue                           14,712            21,731<br />         Other long-term liabilities                (5,017)            7,702<br />           Net cash used in operating activities  (139,292)         (131,046)<br />     Cash flows from investing activities:<br />       Additions to property and equipment         (39,225)          (12,458)<br />       Sales of property and equipment                 -                  96<br />       Purchases of restricted and other<br />        investments                                 (3,000)             (310)<br />       Sale of investments                           5,000               -<br />       Merger related costs                        (10,018)           (2,901)<br />       Sales of available-for-sale securities            8            10,850<br />           Net cash used in investing<br />            activities                             (47,235)           (4,723)<br />     Cash flows from financing activities:<br />       Repayment of long-term borrowings              (625)              -<br />       Proceeds from exercise of stock options         840             1,510<br />           Net cash provided by financing<br />            activities                                 215             1,510<br />     Net decrease in cash and cash equivalents    (186,312)         (134,259)<br />     Cash and cash equivalents at the<br />      beginning of period                          438,820           393,421<br />     Cash and cash equivalents at the<br />      end of period                               $252,508          $259,162<br /><br /><br /><br />    FOOTNOTES TO PRESS RELEASE AND TABLES FOR NON-GAAP FINANCIAL MEASURES<br /><br /></pre><p>This press release, including the selected financial
information above, includes the following non-GAAP financial measures:
average monthly churn; SAC per gross subscriber addition; customer
service and billing expenses per average subscriber; free cash flow;
average monthly revenue per subscriber, or ARPU; adjusted loss from
operations; and adjusted net loss. The definitions and usefulness of
such non-GAAP financial measures are as follows (dollars in thousands,
unless otherwise stated): </p><pre>     (1) SIRIUS defines average monthly churn as the number of deactivated<br />         subscribers divided by average quarterly subscribers.<br /><br />     (2) SIRIUS defines SAC per gross subscriber addition as subscriber<br />         acquisition costs, excluding stock-based compensation, and margins<br />         from the direct sale of SIRIUS radios and accessories divided by the<br />         number of gross subscriber additions for the period. SAC per gross<br />         subscriber addition is calculated as follows:<br /><br /><br />                                              For the Three Months<br />                                                    March 31,<br />                                              2008              2007<br /><br />    Subscriber acquisition costs            $89,824          $100,117<br />    Less:  stock-based compensation             (14)           (1,880)<br />    Add:  margin from direct sales of<br />     SIRIUS radios and accessories            1,525             1,787<br />    SAC                                     $91,335          $100,024<br />    Gross subscriber additions            1,003,422           988,458<br />    SAC per gross subscriber addition           $91              $101<br /><br /><br />     (3) SIRIUS defines customer service and billing expenses per average<br />         subscriber as total customer service and billing expenses, excluding<br />         stock-based compensation, divided by the daily weighted average<br />         number of subscribers for the period. Customer service and billing<br />         expenses per average subscriber is calculated as follows:<br /><br /><br />                                                   For the Three Months<br />                                                      Ended March 31,<br />                                                  2008              2007<br /><br />    Customer service and billing expenses       $26,922           $21,853<br />    Less:  stock-based compensation                (276)             (199)<br />    Customer service and billing expenses,<br />     as adjusted                                $26,646           $21,654<br />    Daily weighted average number of<br />     subscribers                              8,446,343         6,295,282<br />    Customer service and billing expenses,<br />      as adjusted, per average subscriber         $1.05             $1.15<br /><br /><br />     (4) SIRIUS defines free cash flow as cash flow from operating activities,<br />         capital expenditures, merger related costs and restricted and other<br />         investment activity. Free cash flow is calculated as follows:<br /><br /><br />                                                 For the Three Months<br />                                                    Ended March 31,<br />                                                 2008              2007<br />    Net cash used in operating activities     $(139,292)        $(131,046)<br />    Additions to property and equipment         (39,225)          (12,458)<br />    Merger related costs                        (10,018)           (2,901)<br />    Restricted and other investment<br />     activity                                     2,000              (310)<br />    Free cash flow                            $(186,535)        $(146,715)<br /><br /><br />     (5) SIRIUS defines ARPU as the total earned subscriber revenue and net<br />         advertising revenue divided by the daily weighted average number<br />         of subscribers for the period. ARPU is calculated as follows:<br /><br /><br />                                                 For the Three Months<br />                                                    Ended March 31,<br />                                                 2008              2007<br />    Subscriber revenue                         $255,640          $190,796<br />    Net advertising revenue                       8,408             6,721<br />    Total subscriber and net advertising<br />     revenue                                   $264,048          $197,517<br />    Daily weighted average number<br />     of subscribers                           8,446,343         6,295,282<br />    ARPU                                         $10.42            $10.46<br /><br /><br />     (6) SIRIUS believes average monthly churn; SAC per gross subscriber<br />         addition; customer service and billing expenses per average<br />         subscriber; free cash flow; and ARPU provide meaningful information<br />         regarding operating performance and liquidity and are used for<br />         internal management purposes; when publicly providing the business<br />         outlook; as a means to evaluate period-to-period comparisons; and<br />         to compare the company's performance to that of its competitors.<br />         SIRIUS also believes that investors use current and projected metrics<br />         to monitor performance of the business and make investment decisions.<br /><br />         SIRIUS believes the exclusion of stock-based compensation expense in<br />         the calculations of SAC per gross subscriber addition and customer<br />         service and billing expenses per average subscriber is useful given<br />         the significant variation in expense that can result from changes in<br />         the fair market value of SIRIUS common stock, the effect of which is<br />         unrelated to the operational conditions that give rise to variations<br />         in the components of subscriber acquisition costs and customer<br />         service and billing expenses. Specifically, the exclusion of<br />         stock-based compensation expense in the calculation of SAC per gross<br />         subscriber addition is critical in being able to understand the<br />         economic impact of the direct costs incurred to acquire a subscriber<br />         and the effect over time as economies of scale are reached.<br /><br />         These non-GAAP financial measures are used in addition to and in<br />         conjunction with results presented in accordance with GAAP. These<br />         non-GAAP financial measures may be susceptible to varying<br />         calculations; may not be comparable to other similarly titled<br />         measures of other companies; and should not be considered in<br />         isolation for, or superior to measures of financial performance<br />         prepared in accordance with GAAP.<br /><br />     (7) SIRIUS refers to net loss before taxes; other income<br />         (expense) -- including interest and investment income, interest<br />         expense, equity in net loss of affiliate; depreciation; and<br />         stock-based compensation expense as adjusted loss from operations.<br />         Adjusted loss from operations is not a measure of financial<br />         performance under GAAP. The company believes adjusted loss from<br />         operations is a useful measure of its operating performance. The<br />         company uses adjusted loss from operations for budgetary and planning<br />         purposes; to assess the relative profitability and on-going<br />         performance of consolidated operations; to compare performance from<br />         period to period; and to compare performance to that of its<br />         competitors. The company also believes adjusted loss from operations<br />         is useful to investors to compare operating performance to the<br />         performance of other communications, entertainment and media<br />         companies. The company believes that investors use current and<br />         projected adjusted loss from operations to estimate the current or<br />         prospective enterprise value and make investment decisions.<br /><br />         Because the company funds and builds-out its satellite radio system<br />         through the periodic raising and expenditure of large amounts of<br />         capital, results of operations reflect significant charges for<br />         interest and depreciation expense. The company believes adjusted loss<br />         from operations provides useful information about the operating<br />         performance of the business apart from the costs associated with the<br />         capital structure and physical plant. The exclusion of interest<br />         expense and depreciation is useful given fluctuations in interest<br />         rates and significant variation in depreciation expense that can<br />         result from the amount and timing of capital expenditures and<br />         potential variations in estimated useful lives, all of which can vary<br />         widely across different industries or among companies within the same<br />         industry. The company believes the exclusion of taxes is appropriate<br />         for comparability purposes as the tax positions of companies can vary<br />         because of their differing abilities to take advantage of tax<br />         benefits and because of the tax policies of the various jurisdictions<br />         in which they operate. The company also believes the exclusion of<br />         stock-based compensation expense is useful given the significant<br />         variation in expense that can result from changes in the fair market<br />         value of the company's common stock. Finally, the company believes<br />         that the exclusion of equity in net loss of affiliate (SIRIUS Canada,<br />         Inc.) is useful to assess the performance of its core consolidated<br />         operations in the continental United States. To compensate for the<br />         exclusion of taxes, other income (expense), depreciation, impairment<br />         charges and stock-based compensation expense, the company separately<br />         measures and budgets for these items.<br /><br />         There are material limitations associated with the use of adjusted<br />         loss from operations in evaluating the company compared with net<br />         loss, which reflects overall financial performance, including the<br />         effects of taxes, other income (expense), depreciation, impairment<br />         charges and stock-based compensation expense. The company uses<br />         adjusted loss from operations to supplement GAAP results to provide<br />         a more complete understanding of the factors and trends affecting the<br />         business than GAAP results alone. Investors that wish to compare and<br />         evaluate the operating results after giving effect for these costs,<br />         should refer to net loss as disclosed in the unaudited consolidated<br />         statements of operations. Since adjusted loss from operations is a<br />         non-GAAP financial measure, the calculation of adjusted loss from<br />         operations may be susceptible to varying calculations; may not be<br />         comparable to other similarly titled measures of other companies;<br />         and should not be considered in isolation, as a substitute for, or<br />         superior to measures of financial performance in accordance with<br />         GAAP.<br /><br />     (8) SIRIUS refers to adjusted net loss as net loss per share excluding<br />         stock-based compensation expense. Adjusted net loss is not a measure<br />         of financial performance under GAAP. The company believes adjusted<br />         net loss is useful to investors to compare its operating performance<br />         to the performance of other communications, entertainment and media<br />         companies. The company also believes the exclusion of stock-based<br />         compensation expense is useful given the significant variation in<br />         expense that can result from changes in the fair market value of the<br />         company's common stock.<br /><br />         There are material limitations associated with the use of adjusted<br />         net loss in evaluating the company compared with net loss, which<br />         reflects overall financial performance, including the effects of<br />         stock-based compensation expense. The company uses adjusted net loss<br />         to supplement GAAP results to provide a more complete understanding<br />         of the factors and trends affecting the business than GAAP results<br />         alone. Investors that wish to compare and evaluate the operating<br />         results after giving effect for these costs, should refer to net loss<br />         as disclosed in the unaudited consolidated financial statements of<br />         operations. Since adjusted net loss is a non-GAAP financial measure,<br />         the calculation of adjusted net loss may be susceptible to varying<br />         calculations; may not be comparable to other similarly titled<br />         measures of other companies; and should not be considered in<br />         isolation, as a substitute for, or superior to measures of financial<br />         performance prepared in accordance with GAAP.<br /><br /><br />

Record Automotive Additions Fuel Year-Over-Year Gains in Revenue
and Subscribers; First Quarter Ending Subscribers Exceed 9.3 Million

XM-Sirius Merger Passes Department of Justice Antitrust Scrutiny

XM Satellite Radio Holdings Inc. today announced
earnings for the three-month period ended March 31, 2008. Revenue for
the first quarter 2008 rose to $308 million, a nearly 17 percent
increase over first quarter 2007 revenue of $264 million.

XM ended first quarter 2008 with 9.33 million subscribers, an 18
percent increase, compared to 7.91 million subscribers at the end of
first quarter 2007. This growth was driven by a 49 percent
year-over-year increase in the number of gross additions through the
automotive (OEM) channel. First quarter 2008 OEM gross additions were
802 thousand, compared to 537 thousand in first quarter 2007.

“In first quarter 2008 we delivered the largest number of new
customers from the automotive channel in XM’s history, marking the
fourth consecutive quarter of record OEM gross additions,” said Nate
Davis, president and chief executive officer of XM Satellite Radio.
“XM’s ongoing investment in the OEM channel is paying dividends in the
form of record customer additions and continued revenue growth as our
OEM partners further expand XM’s reach to millions of consumers.”

In first quarter 2008, XM reported total gross additions of 1.034
million, and 303 thousand net subscriber additions, compared to 868
thousand gross additions and 285 thousand net subscriber additions in
first quarter 2007.

First quarter 2008 adjusted operating loss was $30.7 million,
compared to a loss of $27 million in first quarter 2007. The first
quarter 2008 adjusted operating loss includes $3.5 million of merger
related expenses, compared to $9.2 million in first quarter 2007.

XM’s first quarter 2008 net loss was $129 million, compared to a
first quarter 2007 net loss of $122 million. For a reconciliation of
XM’s net loss to adjusted operating loss, see the attached financial
schedules.

In first quarter 2008, XM’s subscriber acquisition costs (SAC), a
component of cost per gross addition (CPGA), were $73, compared to $65
in first quarter 2007. CPGA in first quarter 2008 fell below $100 to
$99 for the first time since third quarter 2006 and compares to $103 in
first quarter 2007.

XM continued to maintain stability in key operating metrics of
conversion and churn, both of which improved year over year. First
quarter 2008 conversion was 53.3 percent, compared to first quarter
2007 conversion of 51.5 percent. First quarter 2008 churn was 1.77
percent, compared to first quarter 2007 churn of 1.78 percent.

As of March 31, 2008, the company had total available liquidity of
nearly $425 million comprised of approximately $212 million in cash and
cash equivalents, $62.5 million remaining on its $250 million secured
credit facility and a $150 million credit facility with General Motors.

During first quarter 2008 XM continued to grow its automotive
customer base and, in addition to record volumes, achieved the
following:

  --  XM's OEM partners produced approximately 1 million new XM-equipped      vehicles in the first quarter 2008 alone, compared to 690 thousand in      first quarter 2007. XM unveiled its groundbreaking NavWeather Service      and announced that the real-time, weather tracking system for in-dash      GPS navigation will debut on the 2009 Acura RL and Acura TSX;

  --  The first Toyota brands with factory-equipped XM arrived at      dealerships nationwide.  The all-new 2009 Toyota Corolla and Matrix      are now available with factory-installed XM Radio;

  --  In the first quarter, award-winning XM NavTraffic expanded its      availability to include 2009 model year vehicles from Toyota, Infiniti      and Hyundai. More recently, GM announced NavTraffic availability in 22      of its 2009 model year vehicles. Altogether XM NavTraffic will be      available in more than 40 Honda, GM, Toyota, Nissan and Hyundai 2009      model year vehicles.

During first quarter 2008 the company continued to enhance its industry- leading programming:

  --  XM launched its fourth season as the exclusive satellite radio      provider of Major League Baseball, airing every game for every team to      fans nationwide;

  --  XM recently completed its first season of carrying every NHL game for      every team and is now airing every game of the Stanley Cup playoffs;

  --  XM wrapped its first season as the official satellite radio network of      the six BCS conferences with the exclusive satellite radio broadcast      of the BCS National Championship Game;

  --  XM announced it would be the exclusive satellite provider of The      Masters golf tournament for the third consecutive year, providing more      live radio coverage of the event than any other media outlet;

  --  The XM Sports Nation channel added two of the biggest names in sports      talk - Dan Patrick and Tony Kornheiser;

  --  XM and ESPN launched the ESPN Xtra channel, featuring premier ESPN      Radio shows from major cities, as well as new content produced by ESPN      exclusively for XM listeners;

  --  XM's presidential election channel POTUS '08 won critical acclaim for      its round-the-clock coverage of the presidential primaries;

  --  XM announced a partnership with EWTN, the world's largest religious      media network, to create a micro channel devoted to Pope Benedict's      first visit to the United States;

  --  XM introduced two new micro channels, one dedicated to the 25th      anniversary of Michael Jackson's landmark album "Thriller," the other      dedicated to country music legend George Strait and timed for his      chart-topping album release;

  --  XM's exclusive Oprah & Friends channel was honored with three national      Gracie Awards by the American Women in Radio and Television (AWRT),      which recognize exemplary programming created for women, by women and      about women in all facets of electronic media.

  Merger Update

On March 24, 2008, the U.S. Department of Justice informed XM and
Sirius that it had ended its investigation into their pending merger
without taking action to block the transaction. That decision means the
DOJ concluded the merger is not anti-competitive and that it will allow
the transaction to proceed. The companies each obtained stockholder
approval in November 2007. The pending merger is still subject to
approval by the Federal Communications Commission.

Webcast and Conference Call Information

XM will host an earnings conference call to discuss its first
quarter 2008 financial results today, May 12, at 10:00 AM Eastern Time.
Prior to the call, you can access XM Radio’s first quarter 2008 results
on the Company’s website at http://www.xmradio.com/.
To listen to the conference call via telephone, please call one of the
following numbers approximately 10 minutes prior to the planned start
of the call:

    Call-in number:               (877) 265-5808    Local call-in number:         (706) 679-7931    Conference ID#:               46660772

The conference call can also be accessed through a live webcast on the Company’s website at http://www.xmradio.com/(click
on “Investor Info” link at the bottom of the page). The webcast of the
call will also be archived on the Company’s Web site. A replay of the
conference call will be available after 11:30 a.m. ET on May 12 until
August 12 via the following numbers:

    Playback Numbers:               (800) 642-1687    Local playback number:          (706) 645-9291    Conference ID#:                 46660772

It’s been 16 years since Primosphere Limited
Partners filed with the FCC to get a license to beam radio programming
from satellites to receivers in North America — and for Cliff
Burnstein it was also $140,000 ago. Now he’s hoping that a satellite
merger will open the door to Primopshere’s long-awaited license.

Burnstein,
who grew up in Chicago loving radio – and later was a stakeholder in a
group which owned 15 stations on the West Coast in Bakersfield, Santa
Maria and other cities until selling out to Clear Channel in the go-go
days – still wants to recreate a bunch of channels that draw listeners
to radio like the old days.

And, he tells R&R, his partner
Peter Mensch, feels the same way. Burnstein says they have no opinion
on whether the merger between Sirius and XM should be approved by the
FCC, but they have had five meetings with the agency to let the
government know that if the companies are merged, they want the Feds to
live up to the original rules and have at least two different license
holders. And they want to be one of them.

Primosphere, along
with Digital Satellite Broadcasting Service, CD Radio and American
Mobile Satellite Radio Service paid the government $70,000 each for two
“satellite slots,” recalls Burnstein. The government then changed to
method of the proceeding and asked for bids on the rights. CD and
American Satellite, which later became Siruis and XM, and the ultimate
winners with bids between $79 million and $84 million for the licenses,
respectively, never returned Primosphere’s original $140,000 deposit.

Burnstein
says that “the rules said there had to be two providers and our
position from a technically legalistic standpoint is that we should be
the other provider.”

Despite a handful of meetings with senior
deputy chief of the media bureau Roy Stewart and commissioner Jonathan
Adelstein, among others, Burnstein says, he still could not get a read
on where exactly the FCC was going with a ruling on the satellite
merger but it was also clear to him that FCC officials are
“uncomfortable with a single provider.”

Another group,
minority owned Georgetown Partners based in Bethesda, Md., is also
seeking a government-forced award of satellite spectrum if the merger
happens, and it too, has had several in-person meetings with ranking
FCC officials to win their favor. But Burnstein says “they don’t have
any standing in this. We have a legal standing even if it is by a
thread.” And, he adds, Primosphere does not need funding and could be
up and running with newly built studio space within six months.

The
company would, however, need the FCC to mandate that the merged entity
lease some technology to a second company that would need uplink and
downlink capability for its programming to satellite receivers.
Primosphere would be advertising-based and would offer about 30
channels of mostly music programming, forecasts Burnstein, who is a
longtime friend of former XM programmer Lee Abrams. Burnstein says
Primosphere’s “will come at this from a music and programming
perspective.” While nearly 60, he’s still “a little bit idealistic” but
his idea is not to compete with terrestrial radio but “to serve the
underserved.”

Burnstein and Mensch operate Q Prime in New
York, which has managed Def Leppard for 25 years as well as Metallica,
Red Hot Chili Peppers, Shania Twain and the now-disbanded bluegrass
group, Nickel Creek, among others.

[Via:Radioandrecords.com]

You can read up on Primosphere at Wikipedia http://en.wikipedia.org/wiki/Primosphere_Limited_Partnership

So how many more weeks, months, years before we hear word about this merger from the FCC? Is kevin Martin still alive?