WorldSpace recently released their 3Q06 results and quite frankly, they stink. All the key metrics (subs, churn, ARPU, etc) came in lower than expected, and their net loss nearly doubled in the prior-year quarter ($28.9 million vs $15.4 million).

The big news is that WorldSpace has hired UBS to "evaluate strategic partnership alternatives" that "may enhance shareholder value and further the execution of our business plan." Guess what, it's a move that's absolutely necessary. They need to leverage that infrastructure for a serious cash infusion, and do it quick. It can't come soon enough. (Psst, why do you think Gary Parsons resigned from their board?)

Seth Jayson at The Motley Fool seems to think that WorldSpace is doomed. Noting that automobile use is something that WorldSpace simply can't do yet, as indicated in their annual report. They first need to add terrestrial repeaters and a next-gen of receivers able to receive both terrestrial and satellite signal. Hence why those repeaters in Italy were so important.

So one of the key drivers of growth, OEM distribution, is currently out of reach for WorldSpace. And they're burning cash much faster than they can make it. Not to mention the regulatory hurdles with 130 countries to deal with. Not good. Seth poignently ends his article with, "if WorldSpace isn't bankrupt within two years, I'll buy one of those Indian receivers myself."

Can't say I disagree. Here's my verdict:

[Fool.com]
Thanks John!