Revenue was up and losses were down when D.C.-based XM Satellite Radio reported its financial results for the first quarter of 2007.
XM’s revenue was $264 million for the quarter ending March 31, 27 percent higher than it was for the same time period in 2006. Its loss for the quarter was $122 million, compared with $149 million during first quarter last year.
“While one solid quarter does not make a trend, our performance … improved decidedly in our efforts to address a number of business challenges, and those efforts have begun to yield results,” Chief Executive Officer Hugh Panero said during a conference call with investors Thursday.
The company has concentrated its marketing efforts on its customers who get pre-installed XM in their cars rather than those who buy it retail, XM President Nate Davis said during the call.
The quarter was significant because it showed XM more open about its future, analyst Shaun Parvez of New York-based firm Cowen & Co. said Thursday.
The company revealed it would not maintain a cash flow-positive status for all of 2007, but expects to in 2008.
It also gave firmer guidanceabout its expected subscriber growth and financial expectations. XM passed the 8 million subscriber mark this quarter.
“The company is being a bit more forthcoming,” Parvez said.
XM is waiting for the Federal Communications Commission to issue a public comment period soon to allow individuals to comment on its pending merger with New York-based Sirius Satellite Radio.
Merger-related expenses cost XM $8 million during the quarter, Panero said.
