XM Satellite Radio cuts subscribers forecast for the current year

XM Satellite Radio cuts subscribers forecast for the current year

XM Satellite Radio is finding itself in trouble as they have now cut its 2006 subscriber forecast to 8.5 million from 9 million. The news resulted in company’s share taking a beating at the stock market as share prices fell down by almost 11%.

The company is facing slowdown in the sales of their products in the market. This has resulted in a situation that they have to cut down their subscribers forecast for the current year.

Hugh Panero, chief executive of the company said in a statement: “Although XM has regained retail market share since the first of the year, the satellite-radio category has seen an overall softness at retail during the second quarter to date, and we have been later than anticipated with broad availability of our new products.”

They had a great first quarter but problems related with their products have slowed down the sales in the past couple of months. Just recently, the Federal Communications Commission declared that the company’s Delphi XM SkyFi2 radio does not comply with federal emission limits. They are now conducting an inquiry into the matter.