Year-over-year retail sales fell 33% in February, an increase from the 44% drop in January (and 46% drop in December). Remember that this time last year was when we were just beginning to slide down the Stern Effect, so YoY comparisons are going to get easier from this point forward.

The Quick Glance:

• Sirius February 2007 Retail Sales:
  Down 31% YoY
• XM February 2007 Retail Sales:
  Down 35% YoY

• Sirius Feb '07 Retail Marketshare: 56%
• XM Feb '07 Retail Marketshare: 44%

Sirius continues its lead in retail marketshare, gaining a percentage point from January (if your math is rusty: Sirius had 55% retail marketshare in January, while XM had 45%). Still, considering the dismal retail sales numbers from December (particularly for XM) any signs of improvement is good news.

Baring any unforeseen hickups in production, we can easily expect retail sales YoY numbers to rise in the coming months.

Sirius Satellite Radio stated in a filing with the SEC today, that a licensed manufacturer and distributor of Sirius radios, "has commenced an arbitration proceeding" against them - seeking a total of $48 million.

The company, U.S. Electronics Inc., alleges that Sirius breached their contract, failed to pay money owed under the contract, interfered with U.S. Electronics’ relationships with retailers and manufacturers, and withheld information relating to the FCC’s inquiring into Sirius radios that include FM modulators.

As a result, U.S. Electronics is seeking $48 million in damages.

Sirius believes that $41 million of these damages are barred by limitation of liability provisions within their contract, and said they will "vigorously" defend this action.