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I would like to know the current amount of outstanding shares the company has. The last 10Q reported around 13.9 million O/S. The latest earnings outlook mentions 14.5 million O/S.
Thank you,
-----------------------------------------
****,
I apologize for the late reply ... I was out on a personal day yesterday.
Regarding your question, the difference between the 13.9 million and the 14.5 million is that the 13.9 million represent basic shares outstanding. The 14.5 million represent dilutive shares outstanding (basic plus options outstanding).
I hope this helps you. If you need any further help, feel free to contact me.
Richard J. Almeida
Physicians Formula Holdings, Inc.
(626) 334-3395, Ext. 1246
Number of shares of common stock, par value $0.001, outstanding at April 30, 2007:
20,188,294
http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0000950134%252D07...
RBCL Change:+0.11 +15.49%
http://www.marketwatch.com/quotes/rbcl
RBC Life Sciences Reports Second Quarter Earnings 74 Percent Higher
IRVING, Texas, Jul 31, 2007 (BUSINESS WIRE) -- RBC Life Sciences, Inc. (OTC BB: RBCL) today reported a 15 percent increase in net sales to $7,148,000 in the second quarter of 2007 compared to net sales of $6,203,000 in the same period last year. The Company's net earnings in the second quarter of 2007 increased 74 percent to $510,000, or $0.02 per share, compared to net earnings of $293,000, or $0.01 per share, in the second quarter of 2006.
The Company also reported a 14 percent increase in net sales to $12,540,000 in the first six months of 2007 compared to net sales of $11,011,000 in the same period last year. The Company's net earnings increased 229 percent to $835,000, or $0.04 per share, in the first six months of this year compared to net earnings of $254,000, or $0.01 per share, in the same period last year.
Clinton Howard, Chairman and CEO of RBC Life Sciences, said, "The significant increase in earnings in the first half of this year was driven by improved operating profits and strong sales in both of our operating segments: nutritional supplements sold under the RBC Life Sciences brand and professional wound care products sold under the MPM Medical brand. Also, comparative earnings for the first six months of last year were lower due to expenses associated with opening an office in Asia in 2006."
RBC Life Sciences develops, manufactures and markets skin care products and food supplements often found to be low or missing in modern diets. All products are tested for quality assurance in-house, and by outside independent laboratories, to comply with regulations in the U.S. and in more than twenty five countries to which the products are shipped.
MPM Medical, a wholly owned subsidiary of RBC, develops and markets proprietary prescription and nonprescription products for wound and pain management, sold through medical-surgical dealers, to nursing homes, hospitals and cancer clinics.
The statements above, other than statements of historical facts, may be forward-looking. Actual events will be dependent upon a number of factors and risks including but not limited to changes in plans by the Company's management, delays or problems in production, changes in the regulatory process, changes in market trends, and a number of other factors and risks described from time to time in the Company's filings with the Securities and Exchange Commission.
RBC Life Sciences, Inc.
Summary Results of Operations
(in thousands, except per share data)
(unaudited)
Quarters Ended June 30,
--------------------------
2007 2006
----------- ----------
Net sales $ 7,148 $ 6,203
Gross profit 3,793 3,574
Operating profit 866 517
Earnings before income taxes 812 453
Provision for income taxes 302 160
Net earnings 510 293
Earnings per share - basic $ 0.03 $ 0.01
Earnings per share - diluted 0.02 0.01
Weighted average shares outstanding - basic 20,266 20,155
Weighted average shares outstanding -
diluted 22,949 22,404
Six Months Ended June 30,
-------------------------
2007 2006
----------- ----------
Net sales $ 12,540 $ 11,011
Gross profit 7,098 6,830
Operating profit 1,458 543
Earnings before income taxes 1,345 414
Provision for income taxes 510 160
Net earnings 835 254
Earnings per share - basic $ 0.04 $ 0.01
Earnings per share - diluted 0.04 0.01
Weighted average shares outstanding - basic 20,227 20,150
Weighted average shares outstanding -
diluted 22,109 22,492
RBC Life Sciences, Inc.
Condensed Balance Sheets
(in thousands)
(unaudited)
June 30, December 31,
----------------------------
2007 2006
------------ ------------
Assets
Cash and cash equivalents $ 3,883 $ 3,220
Inventories 3,743 2,651
Other current assets 1,703 1,062
------------ ------------
Total current assets 9,329 6,933
Other assets 6,497 6,582
------------ ------------
Total assets $ 15,826 $ 13,515
============ ============
Liabilities and shareholders' equity
Accounts payable and accrued liabilities $ 3,843 $ 2,015
Deferred revenue 2,385 2,504
Other current liabilities 291 480
------------ ------------
Total current liabilities 6,519 4,999
Other liabilities 2,901 3,033
Shareholders' equity 6,406 5,483
------------ ------------
Total liabilities and shareholders'
equity $ 15,826 $ 13,515
============ ============
SOURCE: RBC Life Sciences, Inc.
CONTACT: RBC Life Sciences
Steve Brown, CFO, 972-893-4000
steveb@rbcls.com
www.rbclifesciences.com
Copyright Business Wire 2007
-0-
KEYWORD: United States
North America
Texas
INDUSTRY KEYWORD: Health
Fitness & Nutrition
Professional Services
Finance
Retail
Specialty
SUBJECT CODE: Earnings
http://www.pinksheets.com/pink/quote/quote.jsp?symbol=rbcl#openEdgNews8616029
RBCL - RBC Life Sciences Reports Second Quarter Earnings 74 Percent Higher
IRVING, Texas, Jul 31, 2007 (BUSINESS WIRE) -- RBC Life Sciences, Inc. (OTC BB: RBCL) today reported a 15 percent increase in net sales to $7,148,000 in the second quarter of 2007 compared to net sales of $6,203,000 in the same period last year. The Company's net earnings in the second quarter of 2007 increased 74 percent to $510,000, or $0.02 per share, compared to net earnings of $293,000, or $0.01 per share, in the second quarter of 2006.
The Company also reported a 14 percent increase in net sales to $12,540,000 in the first six months of 2007 compared to net sales of $11,011,000 in the same period last year. The Company's net earnings increased 229 percent to $835,000, or $0.04 per share, in the first six months of this year compared to net earnings of $254,000, or $0.01 per share, in the same period last year.
Clinton Howard, Chairman and CEO of RBC Life Sciences, said, "The significant increase in earnings in the first half of this year was driven by improved operating profits and strong sales in both of our operating segments: nutritional supplements sold under the RBC Life Sciences brand and professional wound care products sold under the MPM Medical brand. Also, comparative earnings for the first six months of last year were lower due to expenses associated with opening an office in Asia in 2006."
RBC Life Sciences develops, manufactures and markets skin care products and food supplements often found to be low or missing in modern diets. All products are tested for quality assurance in-house, and by outside independent laboratories, to comply with regulations in the U.S. and in more than twenty five countries to which the products are shipped.
MPM Medical, a wholly owned subsidiary of RBC, develops and markets proprietary prescription and nonprescription products for wound and pain management, sold through medical-surgical dealers, to nursing homes, hospitals and cancer clinics.
The statements above, other than statements of historical facts, may be forward-looking. Actual events will be dependent upon a number of factors and risks including but not limited to changes in plans by the Company's management, delays or problems in production, changes in the regulatory process, changes in market trends, and a number of other factors and risks described from time to time in the Company's filings with the Securities and Exchange Commission.
RBC Life Sciences, Inc.
Summary Results of Operations
(in thousands, except per share data)
(unaudited)
Quarters Ended June 30,
--------------------------
2007 2006
----------- ----------
Net sales $ 7,148 $ 6,203
Gross profit 3,793 3,574
Operating profit 866 517
Earnings before income taxes 812 453
Provision for income taxes 302 160
Net earnings 510 293
Earnings per share - basic $ 0.03 $ 0.01
Earnings per share - diluted 0.02 0.01
Weighted average shares outstanding - basic 20,266 20,155
Weighted average shares outstanding -
diluted 22,949 22,404
Six Months Ended June 30,
-------------------------
2007 2006
----------- ----------
Net sales $ 12,540 $ 11,011
Gross profit 7,098 6,830
Operating profit 1,458 543
Earnings before income taxes 1,345 414
Provision for income taxes 510 160
Net earnings 835 254
Earnings per share - basic $ 0.04 $ 0.01
Earnings per share - diluted 0.04 0.01
Weighted average shares outstanding - basic 20,227 20,150
Weighted average shares outstanding -
diluted 22,109 22,492
RBC Life Sciences, Inc.
Condensed Balance Sheets
(in thousands)
(unaudited)
June 30, December 31,
----------------------------
2007 2006
------------ ------------
Assets
Cash and cash equivalents $ 3,883 $ 3,220
Inventories 3,743 2,651
Other current assets 1,703 1,062
------------ ------------
Total current assets 9,329 6,933
Other assets 6,497 6,582
------------ ------------
Total assets $ 15,826 $ 13,515
============ ============
Liabilities and shareholders' equity
Accounts payable and accrued liabilities $ 3,843 $ 2,015
Deferred revenue 2,385 2,504
Other current liabilities 291 480
------------ ------------
Total current liabilities 6,519 4,999
Other liabilities 2,901 3,033
Shareholders' equity 6,406 5,483
------------ ------------
Total liabilities and shareholders'
equity $ 15,826 $ 13,515
============ ============
SOURCE: RBC Life Sciences, Inc.
CONTACT: RBC Life Sciences
Steve Brown, CFO, 972-893-4000
steveb@rbcls.com
www.rbclifesciences.com
Copyright Business Wire 2007
-0-
KEYWORD: United States
North America
Texas
INDUSTRY KEYWORD: Health
Fitness & Nutrition
Professional Services
Finance
Retail
Specialty
SUBJECT CODE: Earnings
RBC Life Sciences Reports Second Quarter Earnings 74 Percent HigherLast update: 7/31/2007 9:30:26 AMIRVING, Texas, Jul 31, 2007 (BUSINESS WIRE) -- RBC Life Sciences, Inc. (RBCL) today reported a 15 percent increase in net sales to $7,148,000 in the second quarter of 2007 compared to net sales of $6,203,000 in the same period last year. The Company's net earnings in the second quarter of 2007 increased 74 percent to $510,000, or $0.02 per share, compared to net earnings of $293,000, or $0.01 per share, in the second quarter of 2006. The Company also reported a 14 percent increase in net sales to $12,540,000 in the first six months of 2007 compared to net sales of $11,011,000 in the same period last year. The Company's net earnings increased 229 percent to $835,000, or $0.04 per share, in the first six months of this year compared to net earnings of $254,000, or $0.01 per share, in the same period last year. Clinton Howard, Chairman and CEO of RBC Life Sciences, said, "The significant increase in earnings in the first half of this year was driven by improved operating profits and strong sales in both of our operating segments: nutritional supplements sold under the RBC Life Sciences brand and professional wound care products sold under the MPM Medical brand. Also, comparative earnings for the first six months of last year were lower due to expenses associated with opening an office in Asia in 2006." RBC Life Sciences develops, manufactures and markets skin care products and food supplements often found to be low or missing in modern diets. All products are tested for quality assurance in-house, and by outside independent laboratories, to comply with regulations in the U.S. and in more than twenty five countries to which the products are shipped. MPM Medical, a wholly owned subsidiary of RBC, develops and markets proprietary prescription and nonprescription products for wound and pain management, sold through medical-surgical dealers, to nursing homes, hospitals and cancer clinics. The statements above, other than statements of historical facts, may be forward-looking. Actual events will be dependent upon a number of factors and risks including but not limited to changes in plans by the Company's management, delays or problems in production, changes in the regulatory process, changes in market trends, and a number of other factors and risks described from time to time in the Company's filings with the Securities and
RBCL RBC Life Sciences Reports 2Q Earnings 74 % Higher
RBCL RBC Life Sciences Reports 2Q Earnings 74 % Higher
http://investorshub.advfn.com/boards/board.asp?board_id=9877
New Venturesome Manufacturers with Specialty Offerings Giving the Makeup Industry a New Look, Says Mercanti Report
MINNEAPOLIS--(BUSINESS WIRE)--
Walk into any department store, and what's the first thing that greets you? Counter after counter of makeup. In the cosmetics industry, makeup, a $6 billion to $8 billion business in the U.S., is a steady growth category, with consistent yearly gains and mounting demand.
And while the makeup segment is dominated by three giants (L'Oreal, Procter & Gamble and Revlon), smaller companies enjoying faster growth potential are beginning to proliferate and make their mark, says the newly released monthly Mercanti Chronicle report by investment banking firm, The Mercanti Group.
"Successful private equity investments in makeup companies, such as Bare Essentials (NASDAQ: BARE) and Physician's Formula (NASDAQ: FACE), have recently been realized through initial public offerings," says the study by Mercanti Principal Josh Susser.
"Further, highly experienced private equity investors have recently invested in Philosophy, SmashBox and Stila. Each of these companies is capitalizing on a makeup market in flux, where small share gains have a dramatic impact on investment returns," the report states.
Noting that today 70% of women in the U.S. wear makeup, the comprehensive Mercanti report says that entrepreneurial and start-up companies have found ways to exploit the market's fragmentation within certain channels and niches. "In the process, they have created cult followings and significant shareholder value," it says.
Other changes are afoot, the report comments. While historically food, drug and mass retailers, along with department stores, have accounted for nearly all makeup sales, consumers are increasingly turning to other sources, such as the Internet, infomercials, home shopping channels and home marketing organizations. In addition, mass merchants and growing specialty retailers now offer prestige products, creating a significant "upper mass" or "mass-tige" market for luxury makeup goods, Mr. Susser observes.
The growth of the makeup market, which takes place in increments (future gains are expected to nearly match the rate of inflation, as compared to a 5% annual growth previously), is being driven by the appeal of home shopping channel offerings, aging Baby Boomers, enhanced makeup assortments among mass retailers, attractively priced private brands and favorable fashion trends.
"One cannot deny that makeup sales are driven by fashion trends," comments the report. Mr. Susser points out that as mascara and eye liner products have been more innovative in terms of color and effect than lipsticks, eye makeup sales increased 15% from 2004 to 2006, while lip makeup over the same period decreased 7%.
At the same time, consumers are seeking makeup that is natural and has health effects that help improve both body and mind. "In general, the natural makeup trend follows the overall trend toward purchasing natural and organic personal care products for both wellness and a specific function," the Mercanti Chronicle reports. "Consumers are persuaded by makeup products that are multi-functional or that include a pharmaceutical element, so-called cosmeceuticals."
"Research shows that American women today desire their makeup to better match their look. They also want it to be all-natural, hypo-allergenic, non-comedogenic, with nutrients, sunscreen and moisturizer," Mr. Susser concludes. "When they age, they want it to make them look younger. When they are young, they want it to make them look older. What it all adds up to from business and investment viewpoints, is that if makeup companies can find a product to fit individual groups of women, there are infinite opportunities."
Change:+0.44 +3.40% (up 3.4% while the DJIA is taking a dive)
http://www.marketwatch.com/quotes/face
RBCL O/S - 20,188,294 April 30, 2007
Number of shares of common stock, par value $0.001, outstanding at April 30, 2007:
20,188,294
http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0000950134%252D07....
RBCL O/S - 20,188,294 April 30, 2007
Number of shares of common stock, par value $0.001, outstanding at April 30, 2007:
20,188,294
http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0000950134%252D07...
RBCL
Number of shares of common stock, par value $0.001, outstanding at April 30, 2007:
20,188,294
http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=5143641
Could move big off low volume.
RBCL
Number of shares of common stock, par value $0.001, outstanding at April 30, 2007:
20,188,294
http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=5143641
Could move big off low volume.
Energizer to buy Physicians Formula Hldgs??
"By filling product gaps in skin care and hair care, Energizer could have a similar portfolio to that of consumer-products giant Procter & Gamble Co."
"In particular, Alberto-Culver Co.and cosmetics company Physicians Formula Holdings Inc.are the next two most likely targets, said Schmitz."
http://www.marketwatch.com/news/story/energizer-buy-playtex-19-bln/story.aspx?guid=%7B5307A827%2D172...
O/S 13,927,055
The number of shares outstanding of the registrant’s common stock, par value $.01 per share, as of May 10, 2007, was 13,927,055.
http://investor.physiciansformula.com/sec.cfm
Aug 13, 2007 Q2 2007 PHYSICIANS FORMULA HOLDINGS INC Earnings Release - 12:00pm ET
I believe the big drop in share price from the earnings projection/outlook has already been accounted for. I see this stock moving north from here. Esp. with the potential takeover by Energizer.
http://finance.google.com/finance?q=FACE
Physicians Formula Leases 72,000 SF in Covina
Cosmetics Manufacturer Inks Industrial Deal Valued at $1.7 Million
Physicians Formula Inc. leased the entire 71,762-square-foot industrial building at 753 Arrow Grand Circle in Covina, CA. The cosmetic products manufacturer leased the property for 45 months with a total value of $1.7 million or $23.61 per square foot.
"We were able to secure a large industrial facility for our client with certain hard-to-find features in an area which currently has the lowest overall vacancy rate in Los Angeles County," said Shan Lee of GVA Daum, who represented the lessee.
The warehouse property was built in 1985 and is on 3 acres. About 2.8% of the building is office space.
Kerry Cole of Cole Associates represented the landlord, 753 Arrow Grand Circle LLC.
http://www.costar.com/News/Article.aspx?id=661E77F3F93375A640E30712F013C603
Estimated Market Cap
16,554,401.08 as of Jul 20, 2007
Outstanding Shares
20,188,294 as of Nov 1, 2006
Authorized Shares
0
Number of Share Holders of Record
564 as of Mar 14, 2007
Float
6,492,706 as of Mar 8, 2004
Welcome to the RBCL: RBC Life Sciences Board!
FACE breaks 13$ !
i like small steps up. builds support. although..it is a fun ride when a stock goes to the moon in a day....
What do they say about Rome though...?
New hod. abc...easy as .123 !
Filled the small gap created this morning. 12.55-12.59 Chart looks good, JMO.
gla
if you MUST know its .12x.122 (2x1)
;)
Good luck.
OT: anybody into bigger money stocks check out FACE ...IPO last NOV. got less earnings than originally predicted. I got in low 12s after drop from 22....17 ...check it out.
bottom play for me
do your own DD
-scream
XDSL
MPhase Tech Gets US Army Technology Program GrantLast update: 7/17/2007 11:17:38 AM
(MORE TO FOLLOW) Dow Jones NewswiresJuly 17, 2007 11:17 ET (15:17 GMT)
MPhase Tech Gets US Army Technology Program GrantLast update: 7/17/2007 11:17:38 AM
no link yet
The number of shares outstanding of the registrant’s common stock, par value $.01 per share, as of May 10, 2007, was 13,927,055
http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0001104659%252D07...
When date is on that quote? I know lebed was pumping hard when XDSL got an article in a major publication and went up to mid .70's. I believe that was more than a year ago though Of course, everybody should have done a little profit taking there...jmo.
Thanks for the info. and gl.
-scream
i will
Nice movement.
NEWS - mPhase Technologies Director Victor B. Lawrence is recipient of 2007 IEEE Simon Ramo MedalLast update: 7/10/2007 9:15:06 AMLITTLE FALLS, N.J., Jul 10, 2007
(BUSINESS WIRE) -- mPhase Technologies (XDSL) director Victor B. Lawrence has been named the recipient of the 2007 Simon Ramo Medal. Dr. Lawrence is Associate Dean and Batchelor Chair Professor of Electrical & Computer Engineering at Stevens Institute of Technology, Hoboken, NJ. The award is being presented to Dr. Lawrence, "For technical innovation and leadership in the systems engineering of worldwide data communications networks," according to the Institute of Electrical and Electronics Engineers, Inc., the sponsoring organization. Ron Durando, President and CEO of mPhase Technologies, Inc., said: "We congratulate Dr. Lawrence on the occasion of this prestigious recognition and express considerable pride and admiration for his many achievements. We greatly value our professional and personal association." Sponsored by Northrop Grumman, The Simon Ramo Medal was established by the IEEE Board of Directors in 1982 for exceptional achievement in systems engineering and systems science. It may be presented to an individual or multiple recipients up to three. The award is named in honor of the distinguished engineering contributions of Dr. Simon Ramo, former Vice Chairman of the Board and Chairman of the Executive Committee of TRW, Inc. In the evaluation process, the following criteria were considered: significance of achievement in systems engineering and systems science or for technical leadership in a major innovative engineering project within the scope of the IEEE, originality, breadth, impact on technology, patents/publications, and the quality of the nomination. About Dr. Lawrence: In the last 30 years, Victor B. Lawrence has made a significant impact to the global telecommunications industry. His pioneering work has paved the way for many developments in broadband, DSL, HDTV technologies and wireless data transfer. Additionally, his advancements in V-series modem technology and international standards have had a global impact, enabling the interoperability of computer networks across the globe. Dr. Lawrence spent most of his career at Bell Laboratories, where he worked in research and development in signal processing and communications. His application of signal processing to data communication led to many significant advances in high-speed transmission over the public switched telephone network (PSTN). He was the architect and lead engineer behind AT&T's first 2400 bps full-duplex modem; he played a significant role in the development of every major international voiceband modem standard; and over the years, he continued to lead the innovations that resulted in modems up to 56 kbps. His continued efforts in communication transmission led to the development of wireless data modems and other high-speed data connectivity that helped to spur the growth of the Internet worldwide. Dr. Lawrence's work on high-speed transceivers led to the creation of a variety of DSL technologies, which are widely used today for broadband services and high-speed access. About the IEEE: The Institute of Electrical and Electronics Engineers, Inc., (IEEE), is the world's leading professional association for the advancement of technology. Through its global membership, the IEEE is a leading authority on areas ranging from aerospace systems, computers and telecommunications to biomedical engineering, electric power and consumer electronics among others. Members rely on the IEEE as a source of technical and professional information, resources and services. To foster an interest in the engineering profession, the IEEE also serves student members in colleges and universities around the world. About mPhase Technologies, Inc. mPhase Technologies Inc. (XDSL) develops and commercializes next-generation media-rich entertainment software and nanotechnology solutions, delivering novel systems to the marketplace that advance functionality and reduce costs. The company was awarded the Frost & Sullivan 2006 Energy Storage Award for the Nanobattery in September and earlier received the 2005 Frost & Sullivan Excellence in Technology Award, and the Nano 50 Award from NASA Nanotech Briefs, is bringing nanotechnology out of the laboratory and into the market with a planned innovative long life power cell. Additionally, the company is working on prototype ultra-sensitive magnetometers that promise orders of magnitude increases in sensitivity as compared with available un-cooled sensors. More information is available at the mPhase Web site at Safe Harbor Statement This news release contains forward-looking statements related to future growth and earnings opportunities. Such statements are based upon certain assumptions and assessments made by management of companies mentioned in this press release in light of current conditions, expected future developments and other factors they believe to be appropriate. Actual results may differ as a result of factors over which the company has no control.
Anybody know when Sub numbers and earnings will come out?
TIA,
-Scream
resistance at 1.12..if we can get over it, break out for sure. imo
-scream
Traditional Radio to Pay for Play?
http://www.businessweek.com/technology/content/jul2007/tc2007073_639316.htm
Karmazin Raps NAB Spin On Merger:In sitdown with TWICE, Sirius CEO calls broadcast lobby 'disingenuous.'--Post-Merger Plans--Merger Mission--Merger Pros & Cons
http://money.cnn.com/news/newsfeeds/articles/newstex/RBI-0085-17867094.htm
July 02, 2007: 10:40 AM EST
Jul. 2, 2007 (TWICE) --
NEW YORK -- The National Association of Broadcasters [NAB] is "disingenuous" for opposing the proposed satellite radio merger on the grounds that a duopoly would become a monopoly, Sirius Satellite Radio (NASDAQ:SIRI) CEO Mel Karmazin told TWICE in an exclusive interview.
The annual reports of all publicly held radio groups "say in their risk factors that they compete with satellite radio," he said. "So it's just disingenuous for an organization [NAB] to stand up and say this is a duopoly becoming a monopoly."
During an interview at Sirius headquarters here, Karmazin said the intensity of the NAB campaign to shoot down the proposed XM-Sirius merger, although "probably predictable," proves the point that satellite and terrestrial radio compete and that the proposed merger would not result in a monopoly.
Karmazin also made the following points:
--The merger will help satellite radio compete, but isn't necessary for the industry's survival.
--In order to meet the FCC's public-interest requirements, the merged companies would offer "more choice, lower prices" and flexible -- but not totally a la carte -- pricing plans, which would credit consumers for channels that they choose not to receive.
--Aftermarket customers are less likely to churn than consumers who get satellite radio in a new car.
See p. 22 and 23 for Karmazin's responses to key questions. The interview is available in its entirety at (www.TWICE.com) .
...
TWICE : When the merger occurs, presumably the merged company will adopt the best practices of both companies. Can you identify each company's strengths?
Karmazin : We have not been able to get into each other's businesses. There are antitrust concerns that are out there that would stop us from sharing any information at all with XM. All I know about XM is what I know as a competitor. So there hasn't been one bit of information that is confidential that I have learned, or conversely that we have provided to XM, during this period. We're prohibited from knowing.
TWICE : How would you accomplish your "one-radio, two-services" pledge? By porting some XM content to Sirius radios, and vice versa?
Karmazin : We started our service with 100 channels, and through compression technology and engineering enhancement and the normal rotation, we now have 135 channels instead of 100. So what we say is that we'd be able to increase our capacity by a certain number so that our existing receivers would be able to get some additional content. So as an example, if we wanted to have some baseball, or we wanted to have Oprah, or we wanted to have some of this content, we'd be able to deliver that to our satellites and to our receivers subject to the content partners' agreements. We couldn't offer a full complement of both services.
TWICE : Could we see a 50/50 split between XM and Sirius content on an existing satellite radio?
Karmazin : If we wanted to do that, but why would we want to do that if you're a Sirius subscriber and you like our content? We're basically saying to you that we don't want you to be disenfranchised. We saying to you that "You're an existing subscriber, you don't have to pay more than $12.95 after the merger, and your existing radio is going to work."
TWICE : And you would eliminate redundancies in the selection of channels offered by Sirius and XM after the merger to make room for some of the extra channels?
Karmazin : Let's assume for a second that, when the time came, that we'd take a look, and say that we both have a '50s station. Now can you sit there and say, "Which of the '50s channels might be the best channel?" And we'd have some cost savings at the head end, and we would not be producing two 50s channels.
TWICE : So Sirius would still have its voice and brand, and XM would have its voice and brand, a Sirius receiver would continue to get existing Sirius channels plus some additional XM content, and vice versa?
Karmazin : Right.
TWICE : And down the road?
Karmazin : The opportunity exists for us to commercially market an interoperable radio. Right now we have developed it. There's one in my office right now, which is an interoperable radio, which is a receiver that in essence has an XM component and a Sirius component sort of Velcro-ed together. So we developed that, and one of the things that we have the opportunity to do is to market it into retail stores as an interoperable radio, one (NASDAQ:ROIA) that would be priced attractively and be able to get the consumer both services. A radio that gets the best of both services is sort of attractive and again enables the two companies to not water each other down but to have a stronger service while competing with all of these other technologies.
TITLE: Satellite Radio Metrics
Q1 2007 Q1 2006 2006
Sirius 6,581,045 +61.4% 4,077,747 6,024,555 +81.7%
XM 7,913,728 +21.7% 6,501,859 7,628,552 +28.6%
Combined 14,449,773 +36.6% 10,579,606 13,653,107 +47.6%
Sirius 556,490 -26.9% 761,187 2,707,995 +24.6%
XM 285,176 -49.9% 568,902 1,695,595 -37.3%
Combined 841,666 -36.7% 1,330,089 4,403,590 -9.7%
Gross adds 988,458 +2.9% 960,610 3,758,163 +49.2%
Deactivations 431,968 +116.7% 199,423 1,050,168 +203.5%
Gross Adds 868,067 -13.8% 1,007,306 3,866,481 -6.4%
Deactivations 582,891 +33% 438,404 2,170,886 +52.2%
Gross Adds 1,856,525 -5.7% 1,967,916 7,624,644 +14.7%
Deactivations 1,014,859 +59.1% 637,827 3,221,054 +81.7%
...
TWICE : Is the merger necessary to compete with emerging services and technologies such as the place shifting of PC-stored content to a cellphone, delivery of entertainment programs via IP-enabled Mobile WiMAX networks, Wi-Fi streaming of Internet radio services to handheld devices, and the like?
Karmazin : I don't think it is necessary. I think it is very desirable, and it positions us in a better way to compete against all of this technology. But by no means do we believe this merger is about life or death...
Hardly a day goes by that there is not a new company, a new competitor, that's coming out with the ability to get not just music but any content that you want. And we think content is king, and we believe that our content is what's going to separate us from all of these other competitors. No one has better content than we do.
TWICE : So you're as much a content company as a wireless pipe?
Karmazin : We've had a number of discussions internally where people say, "Well, gee, why don't you just take out the satellite radio from your name and just call it Sirius?" And then a number of other people who are sitting there are saying, "Our network is really one of the things that we have going for us," that we have a proprietary network. You can't say that about the Internet.
But I do think that at the end of the day, people are listening to our content, not necessarily listening to a pipe. We're not particularly great fans of a lot of what goes on over Internet radio... and we have so much more content that's not around anyplace else. And it's not just sports [for example]. It's the way we do sports.
You can get plenty of NFL games, but you can't get every single NFL game with home team announcers and away team announcers...
So there are really a whole lot of enhancements that we do. Even on our music channels ... And you add things like Howard Stern and Martha Stewart and Cosmopolitan ... and a lot of the channels that are just not available any place else.
...
YEA
African Methodist Episcopal Church
Alabama House of Representatives
American Values
Hispanic Federation
Latino Coalition
National Council of Women's Organizations
League of Rural Voters
League of United Latin American Citizens
National Black Chamber of Commerce
New York State Federation of Hispanic Chambers of Commerce
Women Impacting Public Policy
Women Involved in Farm Economics
NAY
Alabama House of Representatives
Consumers Union*
Consumer Federation of America*
Common Cause*
Free Press*
Independent Spanish Broadcasters Association (ISBA)
Media Access Project*
National Association of Broadcasters
Prometheus Radio Project*
Sen. Herb Kohl (D-Wisc.), chairman of the U.S. Senate's antitrust subcommittee
71 members of House of Representatives in a letter to the FCC, FTC, and DOJ
*Members of Media and Democracy Coalition
Anyways..you know the rule of thumb.. buy on rumor sell on news...good or bad :)