expenses can always be cut.
Expenses can always be cut.
In the last quarter they reported on (08Q3) they had $488M in revenue and $489M in ordinary operating expenses (so ignore the "Impairment of goodwill" and "Depreciation and amortization"). Now, their revenue has grown some since then and they are surely cutting expenses like MAD (and don't have a bunch of the merger-related expenses, lawyers, bankers, etc). They are also growing more slowly, which reduces Subscriber Acquisition Costs ($87M that quarter).
So long as ordinary operating income is positive, it will make sense for somebody to operate the business, unless the assets of the business are worth more doing something else. SIRIUS doesn't have a lot of assets with other uses.
Sean
Expenses can always be cut.
In the last quarter they reported on (08Q3) they had $488M in revenue and $489M in ordinary operating expenses (so ignore the "Impairment of goodwill" and "Depreciation and amortization"). Now, their revenue has grown some since then and they are surely cutting expenses like MAD (and don't have a bunch of the merger-related expenses, lawyers, bankers, etc). They are also growing more slowly, which reduces Subscriber Acquisition Costs ($87M that quarter).
So long as ordinary operating income is positive, it will make sense for somebody to operate the business, unless the assets of the business are worth more doing something else. SIRIUS doesn't have a lot of assets with other uses.
Sean
You can bring in $100 trillion in revenues but if your expenses are $101 trillion you will go out of buisness unless you can carry debt. Sirius can no longer refinance their debt.
Love and hope is not going to keep this buisness going in its current form.
Please look at these financials and tell me how this company has a chance in hell.
Especially take notice of:
Total Liabilites
Shareholder Equity
Operating Income
All drastically worse since inception in 2003.
SIRI - Sirius XM Radio Inc. - Google Finance
SIRI: SIRIUS XM RADIO INC Balance Sheet