Sirius Satellite Radio has topped Deloitte & Touche's list of the fastest growing companies in New York: the 2007 New York Technology Fast 50.
Deloitte's New York Technology Fast 50 ranks technology, media, telecommunications, and life sciences companies headquartered in the state by percentage revenue growth over five years. Sirius Satellite Radio Inc. beat out the competition - by a long shot - with an incredible 79,060% revenue growth over a five-year period.
To put this figure in perspective: the #2 company, Orchestria Inc., "only" had a 20,692% of five-year revenue growth.
"We commend Sirius for envisioning, and then creating, an entirely new technology platform that changed forever how people think about radio", said Ed Moran, Director, Deloitte Services. "Sirius has overcome enormous challenges in successfully developing and integrating the hardware, software, content and personalities needed to delight their customers."
Technology Fast 50 companies are selected based on percentage revenue growth over the five years from 2002 to 2006. To be considered, entrants must have operating revenues of at least $50,000 in 2002 and at least $5,000,000 in 2006; be headquartered in New York; own proprietary technology or proprietary intellectual property that contributes to a significant portion of its operating revenues, or devote a significant proportion of revenues to the research and development of technology.
To see a list of other winners, visit Deloitte's search page here.
Let's just agree to disagree
Agree to disagree? What do you even mean?
Anyways, 79,060% revenue growth and the stock dropped! So they're still in the red, marginally, you think this massive surge will suddenly stop now just before solvency? I am extremely pissed at the SIRI performance, this isn't some tech stock, it's practically an insurance company or at least a cable tv provider, once they reach black, it will enjoy cost leverage and 100% of every dollar coming in will be profit. There are no marginal costs, just pay for the satellites and you'll be printing money afterwards!
This is where a free market system makes no sense. GOOG actually went up when it bought YouTube because of all the good press, meanwhile it was a loser investment. They had to put aside over 100 MILLION for copyright lawsuits, and the thing makes barely any ad revenue. But SIRI goes down and down!
I did a long term analysis and I figured SIRI should be worth $7 a share, and screw the market for disagreeing with me.
I think there is no doubt D&T's remarks are correct. However, one must consider that Sirius sat on the starting line revving the engine for a couple years (under the prior management) while XM was hauling ass.
In trying to get back into the race, Sirius burned an unbelievable amount of money, including a 3/4 billion commitment to Stern which has totally disrupted their business model.
So, while the "growth" is there, it is a direct result of previous years' stagnation followed by insane spending (and losses to show for it).
D&T would have had a more sensible list had it factored in net losses. However, they're only CPAs -- I'm sure accounting concepts like "net loss" and "negative cash flow" never entered their minds.
>>> 100% of every dollar coming in will be profit. There are no marginal costs, just pay for the satellites and you'll be printing money afterwards!
Where did you get THAT idea?
That may explain why you think SIRI is worth $7/share LOL.
Geez.
More importantly, did you want to kiss me on the mouth?
>>>Where did you get THAT idea?
I got that "idea" from the fact that a Satellite doesn't care how many radios are listening to its signal. Once you get enough subscriptions to pay for the Satellite, cost leverage kicks in and marginal revenues are all profit.
Costs extend past the Satellites into programming and overhead. There might be some neglible increased costs, like maybe billing will need more accountants and customer service a couple more phone banks, but overall it will all be fixed costs. They won't need to invest in a new channel or a more powerful signal for each new listener.
I'm hoping that mashing together the XM and Sirius subscribers and cutting down the overhead of duplicate programming and administrative expenses, they might even hit black right away. Granted, they'll have twice as many Satellites as they would have needed, but that's life, they won't have to replace all of them.
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