Sirius Disappointment

Carl Gutierrez

Even though Sirius Satellite Radio should soon be wed to XM Satellite Radio, the company needs some serious cash to tide it over in the meantime.

On Monday, the company announced it's conducting a $375.0 million stock offering.

"The stock sale was a way for Sirius to gain some financial flexibility at a time when it still faces losses with or without the XM Satellite Radio merger," said Frederick Moran, an analyst at Stanford Group. "Either independent or combined with XM, Sirius still faces operational losses, and some financial flexibility can certainly only help them."

The announcement came on the same day the satellite radio company said in a preliminary quarterly report that its adjusted loss narrowed, thanks to an increase in subscribers. Sirius Satellite Radio (nasdaq: SIRI - news - people ) reported that its adjusted loss from operations is expected to be $24.0 million, well off the $79.0 million loss reported in last year's corresponding period.

Sirius Disappointment....