Wednesday, November 08, 2006

Sirius and CFBE

November 8, 2006

Looking at today’s call, many Sirius investors had many reasons to be pleased. Cost cuts were across the board, and Sirius reiterated their guidance for Q4.

Some wanted Sirius to give a little more definitive of a statement regarding CASH FLOW BREAK EVEN. Sirius stated that they “MAY REACH CFBE AS EARLY AS Q4”

For those that were seeking a stronger statement consider this.

Why would Sirius paint themselves into a situation such as this? The way they currently have it guided, it gives the company a bit of latitude. Given Mel’s performance this year, I think he deserves that.

That being said, dig a bit deeper into the guidance

Sirius Operation Loss year to date is $535,000,000.

Sirius’ REITERATED guidance for 2006 is an Operational Loss of $500,000,000

This would mean, in essence, that Sirius is guiding to being about $35,000,000 ABOVE CFBE in Q4.

There are many variables at play in this business, and I for one am satisfied that Sirius is indeed on the path to CFBE.