FCC Compliance: Read Between The Lines
After review of the SEC filings for both XMSR and Sirius, I found important distinctions in wording noted below. These filings seem to reflect less significant FCC compliance issues and smaller financial impact for Sirius.
Another thing to note, despite manufacturer interruptions, retailers (Best Buy, Radio Shack, Circuit City, etc,) have inventory and are still selling product. Until inventories are depleted, minimal financial impact is anticipated
In the Sirius SEC filing:"We believe our radios that are currently in production comply with applicable FCC rules. We and our manufacturers are cooperating with the FCC to obtain new equipment authorizations for our remaining affected products."
"We do not expect the resolution of these issues to have an adverse impact on our previous guidance."
XMSR, on the other hand, said:
"We have recently been advised our new equipment certifications have been dismissed (but not denied) by the FCC. Dismissal allows the equipment certifications to be reinstated if the equipment is deemed compliant. We are working to complete design or installation modifications, as appropriate, or to conduct additional testing for XM radios, to include addressing uncertainties regarding emissions variability with testing results. In the meantime, we are working to limit interruptions in supply of certain models of XM radios to retailers."
"We can provide no assurances at this time that our actions will be deemed sufficient by the FCC, or that this matter will not have a material impact on our consolidated results of operations or financial position."
7/21/2006 10:18:00 AM
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