On Feb. 27, Sirius Satellite Radio (NASDAQ:SIRI) released fourth-quarter earnings for the period ended Dec. 31.

  • You can read the full analysis on Sirius here.
  • Subscriber acquisition costs decreased, thanks to lower commissions and decreased aftermarket hardware subsidies that resulted in expanded margins.
  • The company achieved positive free cash flow for the quarter for the first time in its history.
  • On Feb. 19, 2007, Sirius announced an agreement to merge with XM Satellite Radio (NASDAQ:XMSR). Make your opinion on the merger known in our Motley Fool CAPS database.
  • For 2007, the company forecasts revenue close to $1 billion and expects its subscriber base to cross 8 million.

(Figures in millions, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$193.4

$80.0

141.7%

Net Profit

($245.6)

($311.4)

N/A

EPS

($0.17)

($0.23)

N/A

Diluted Shares

1,413.9

1,335.7

5.9%



Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

26.0%

6.3%

19.6

Operating Margin

(122.5%)

(371.7%)

249.2

Net Margin

(127.0%)

(389.2%)

262.2

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$408.9

$879.3

(53.5%)



Liabilities

Q1 2007

Q1 2006

Change

Long-Term Debt

$1,068.2

$1,084.4

(1.5%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Q4 2007

Q4 2006

Change

Cash From Ops.

$34.9

($12.2)

N/A

Capital Expenditures

$5.5

$31.9

(82.9%)

Free Cash Flow

$29.4

($44.1)

N/A



Find out why Fools always follow the money.

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