Orbitcast is live blogging the XM Satellite Radio 1Q07 Earnings Call for those folks who can't tune in. Just keep refreshing this page to see updates as they occur..

• Listening to lovely hold music.
• Here we go... starting off with Joe Titlebaum introducing everything

XM Satellite Radio (XMSR) just announced their 1Q07 results, showing that revenue increased by 27 percent year over year to $264 million, net loss narrowed to $122 million, and 285,000 net subscribers were added.

XM announced that it recently surpassed 8 million subscribers.

For 1Q07, adjusted operating loss (formerly adjusted EBITDA) improved by 45 percent to a loss of $27 million from a loss of $49 million in the prior year period. The 1Q07 adjusted operating loss includes $8 million in expenses related to the company's pending merger with Sirius Satellite Radio.

In 1Q07, XM recorded gross subscriber additions of 868,000 and net subscriber additions of 285,000 - compared to the 1 million gross additions and 569,000 net subscriber additions in the same period the year before.

XM's subscriber acquisition costs (SAC), a component of cost per gross addition (CPGA), was $65 compared to $59 in the first quarter of 2006. CPGA in the 2007 first quarter was $103 compared to $93 in the first quarter of 2006.

As of March 31, 2007, the company had $319 million in cash compared to $218 million at the end of December 31, 2006. XM has a total available liquidity of $719 million.

XM Satellite Radio reaffirmed their 2007 guidance of between 9.0 million and 9.2 million subscribers (with higher seasonal growth expected to occur in the latter part of the year); subscription revenue in the 1 billion dollar range; and full-year positive cash flow from operations in 2008.

XM has though made some refinements to its prior guidance for the full-year 2007: CPGA is expected to be in the range of $111-$114; and XM has adjusted operating loss, excluding any merger-related or legal settlement costs, in the range of $170 million to $180 million.

Full financials after the jump... 

Year-over-year retail sales fell 28% in March (up from the 33% drop in February, 44% drop in January and a whoppin' 46% drop in December). We're slowing crawling out of the "Stern Effect" comparison bubble, so this is going to continue to get easier from this point forward.

The Quick Glance:

• Sirius March 2007 Retail Sales:
  Down 31% YoY
• XM March 2007 Retail Sales:
  Down 23% YoY

For the full quarter:

• Sirius 1Q07 Retail Sales: -40% YoY
• XM 1Q07 Retail Sales: -29% YoY
  

Marketshare:

• Sirius Mar '07 Retail Marketshare: 53%
• XM Mar '07 Retail Marketshare: 47%

XM is finally making a bit of a comeback in retail, gaining 3 percentage points against Sirius, and climbing up from a 35% YoY decline last month (though Sirius still beats XM in retail marketshare). Sirius also continues to show a bit of a comeback from a 33% drop last month, and the dismal earlier months.

Still, a decline is a decline, so don't go popping the champaign just yet guys.

I think it's time to get more creative with retail. Father's Day is looming and we need to see some new products, as well as some more aggressive marketing efforts. Mergers are distracting, (that's a fact) but if you want Wall Street to stop pummeling you... well, you need to show growth. Simple right? (Well, no not really, but we've got some ideas.)

XM Satellite Radio has disclosed in a recent SEC filing that their "Compensation Committee" has amended the employment contracts of XM's top brass.

Rather than read the SEC filing (which, like many filings, is deathly boring), I've done all the work for you. So here's some easy-to-consume bullet points to help you on your way:

• XM Chairman Gary Parsons gets an increase in salary from $475,000 to $525,000.
• XM CEO Hugh Panero gets an increase in salary from $650,000 to $700,000
• XM President and COO Nate Davis gets... no raise. (sorry man)
  
• Other Executive Officers get a lump sum payment of two-times their base salary if terminated.
  

The rest is essentially legal ramblings defining terminology and explaining in ponderous detail the length of everyone's term. If any lawyers who are reading this can find a nugget of joy amid the legal madness, feel free to comment.

[SEC Filing] 

(Side note, all this merger talk is frying my brain. Can we bring the fun back?)

XM Satellite Radio has scheduled their earnings call for Thursday, April 26 at 10am ET to announce and discuss their first quarter 2007 financial results.

To listen to the conference call via phone, call: (877) 265-5808 or try the local call-in number: (706) 679-7931 with Conference ID#: 5409333.

Or tune into the XM earnings call webcast here. (4/26 @ 10am ET)