Slow Start For Directed Electronics

Cites slower retail sales of partner Sirius. Directed is the distributor for several popular Sirius units.

Via AP

VISTA, Calif. (AP) -- Directed Electronics Inc., which makes security and entertainment systems for homes and automobiles, said Friday it expects a sluggish start to 2007, due mostly to fewer new subscribers at Sirius Satellite Radio Inc.

The company said Sirius, a key customer for its satellite radio business, expects to add 2 million new subscribers in 2007, which is down from 2.7 million new subscribers in 2006. The subscriber forecast comes on the heels of lower-than-expected retail sales of satellite radio receivers in the fourth quarter, which led to higher inventory levels at stores.

Directed Electronics expects first-half earnings to fall to less than half of what it earned in the same period a year earlier, with the first quarter most challenging. It expects revenue in the range of $83 million to $87 million.........More HERE via AP and Yahoo