Sarantel Group PLC dropped its revenue forecast for the company’s 2006 fiscal year after being informed by XM Satellite Radio demand for satellite radios is below expectations, Sarantel announced July 20.

XM is the largest customer for Sarantel, which makes miniature antennas for a variety of consumer satellite products. Sarantel’s Skytune antenna is used on some of XM’s portable radios.

Sarantel’s 2006 business year closes September 30.