XMSR

Revenues for XM Satellite Radio jumped 82 percent to $227.9 million in the 2006 second quarter, but the satellite operator’s loss increased to $231.7 million, XM Satellite Radio Holdings Inc. announced July 27.

In the same period in 2005, XM lost $148.8 million on revenues of $125.4 million. The second quarter loss includes $105 million in charges for restructuring its debt, XM said.

XM credited its revenue gains to a 56 percent increase in subscriber growth and increases in average revenue per subscriber. XM added 926,000 subscribers during the quarter, which closed June 30, to raise its total subscriber count to 6.9 million. In the 2005 second quarter, XM added 398,000 subscribers to bring its total to 4.4 million.

Subscriber acquisition costs was $64 in the 2006 second quarter, compared to $50 in the 2005 second quarter. Cost per gross addition grew from $98 to $112 in the same period.

XM surpassed the 7 million subscriber mark shortly after the close of the second quarter, but the satellite radio company also dropped its subscriber targets, cutting the number from an anticipated 8.2 million by the end of 2006 to 7.7 million due to "current marketplace dynamics and regulatory uncertainties concerning plug-and-play radios." XM also said it would revisit that number at the end of the third quarter. In May, XM dropped its subscriber estimate from 9 million to 8.5 million.

"Despite near-term challenges, XM’s revenues grew in the second quarter by 82 percent compared to the same quarter last year and we were able to significantly bring down our adjusted EBITDA loss year over year," Hugh Panero, CEO of XM, said in a statement. "It’s a testament to the appeal of satellite radio that XM recently surpassed 7 million subscribers."

LMT

Revenue at Lockheed Martin Space Systems increased 29 percent to $2.1 billion in the 2006 second quarter, driven by growth in satellite and missile defense systems, Lockheed Martin Corp. announced July 25.

The increase in satellites was due to higher volume on both commercial and government programs during the quarter. Lockheed Martin delivered a pair of commercial satellites during the second quarter, which closed June 30, bringing its total to three for the year. In the first six months of 2005, the company did not record a commercial satellite delivery.

Launch services revenue in the 2006 second quarter remained relatively unchanged from the same period in 2005, Lockheed Martin said.

Space Systems operating profit grew 29 percent to $189 million, with all three businesses posting gains. Launch services operating profit increased due to improved performance on the Atlas program due to higher volume and risk reduction activities, while satellite operating profit also benefited from commercial deliveries.

Overall, Lockheed Martin reported revenue of $10 billion and a profit of $580 million in the 2006 second quarter.

NOC

Northrop Grumman Corp.‘s Aerospace segment, which includes the company’s Space Technology segment, reported revenues of $2.3 billion in the 2006 second quarter, matching revenues from the same period a year ago, the company announced July 27. Operating earnings improved from $191 million to $223 million in the same period.

Space Technology posted revenues of $865 million and an operating profit of $81 million in the 2006 second quarter, which closed June 30. In the 2005 second quarter, the segment post higher revenues of $875 million but a lower operating profit of $74 million.

Space Technology sales slipped due to lower volume for restricted programs, which was partially offset by higher sales in satellite communication programs. The operating profit increase was due to performance improvements in software-defined radios, Northrop Grumman said.

Overall, Northrop Grumman reported a profit of $430 million in the 2006 second quarter on revenues of $7.6 billion. In the same period in 2005, the company earned $367 million on revenues of $7.8 billion.

The company’s backlog stands at $8.1 billion, and Northrop expects sales of about $30.5 billion in 2006, down slightly from previous estimates of $31 billion.

"With this quarter’s solid results, including contract acquisition growth of more than 50 percent, we continue to expect double-digit growth in 2006 earnings per share driven by expanding operating margin and a lower share count," Ronald Sugar, Northrop Grumman chairman and CEO, said in a statement. "… Electronics maintained their strong operating margin rate, and Information & Services, Aerospace and Ships all posted double-digit growth in operating margins and substantially higher margin rates, reflecting our continued focus on operating performance."

EAD

The EADS Space Division recorded revenues of 1.3 billion euros ($1.6 billion) in the first half of 2006, compared to revenues of 1.2 billion euros ($1.5 billion) in the first half of 2005, EADS announced July 27.

Earnings before interest and taxes (EBIT) were 36 million euros ($45.5 million) in the first six months of 2006, up from EBIT of 7 million euros ($8.8 million) in the same period in 2005.

The unit’s backlog stood at 11.9 billion euros ($15.9 billion) at the end of June, compared to 10.9 billion euros ($13.7 billion) a year ago.