# What's Up With XM's OEM Biz?



## Nick (Apr 23, 2002)

Along with details on its performance during the first 
quarter, there's talk about how XM fared in the 
automotive sales part of the satellite radio business 
during the past few months.

General Motors and Honda, which have deals in place to
put XM systems into their vehicles, reported that sales 
were down for March and first quarter. Together, vehicle
sales fell about 5 percent during the time period, 
according to Oppenheimer and Co. estimates.

Although car and truck sales were down, Oppenheimer's
Tom Eagan said XM's subscriber additions from the 
automotive business were up during the reporting period.
The analyst estimated that XM netted about 272,000 
subscriber additions from the OEM (original equipment 
manufacturer - or automaker) channel during first 
quarter 2006, which is 28 percent above the 212,000 it 
added from the sector in first quarter 2005.

Added Eagan, "We are not concerned that GM expects to
manufacture 1.2 million units in second quarter 2006, 
down 4 percent from its 1.24 million units in second 
quarter 2005, because we have observed that, in the past,
XM's OEM net adds have not been negatively impacted 
by manufacturing cuts."

Oppenheimer estimates XM will add 1.37 million 
customers from the OEM channel, among 3.1 million 
total net additions forecasted for the company this year.

www.SkyReport.com - used with permission


----------

