Sirius To Launch New Super-Satellite
June 8, 2006 at 6:37 AM (PT)
SIRIUS SATELLITE RADIO inks an agreement with SPACE SYSTEMS/LORAL to design and build a new satellite that will be one of the most advanced and power communications satellites ever built.
“This investment in next generation space technology will improve SIRIUS’ already exceptional service experience,” said MEL KARMAZIN, CEO of SIRIUS. “Not only will this satellite support our other three satellites currently in orbit, but it will also improve reception for all SIRIUS subscribers whether they are in their car, office, home or jogging in the park.”
Construction of the satellite is expected to be completed in the fourth quarter of 2008. SIRIUS plans to launch the satellite on a Proton rocket under a contract previously announced between SIRIUS and INTERNATIONAL LAUNCH SERVICES (ILS).
SIRIUS does not expect the cost of the new satellite -- approximately $260 million -- to significantly impact the company's financials. SIRIUS continues to expect that its first quarter of positive free cash flow, after capital expenditures, could be reached as early as the fourth quarter of 2006, and that the company will be free cash flow positive, after capital expenditures, for the full-year 2007.