David Margolese Steps Down as Sirius CEO.
Commercial Launch Update Scheduled for November 14th
NEW YORK, Oct. 16 /PRNewswire/ --
Sirius Satellite Radio (Nasdaq: SIRI), the satellite radio broadcaster, today announced that David Margolese has stepped down as Chief Executive Officer. The duties of Chief Executive Officer will be assumed, on an interim basis, by an Office of the Chief Executive consisting of John J. Scelfo, Senior Vice President and Chief Financial Officer, and Patrick L. Donnelly, Senior Vice President and General Counsel. Mr. Margolese will remain as non-executive Chairman of the Board of Directors of Sirius.
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"Over the years, we have worked diligently to establish a foundation which would allow Sirius to become a world-class company," said David Margolese. "Sirius is now strong enough to achieve this and the time has come for me to pass the baton. It has been a privilege working this past decade with all of our wonderful people who literally are about to transform the face of radio."
The Board of Directors made the following statement: "The Board warmly thanks David for his great vision, leadership and dedication in creating both Sirius and the satellite radio industry; as Chairman, we will continue to benefit from David's strategic thinking. An intensive search for a new CEO is being conducted by the Board, with the help of Spencer Stuart, and is well under way. Our new CEO will complete Sirius' final transition from a development stage enterprise to an exciting entertainment company that will revolutionize radio. The Board has great confidence in the ability of our senior management to execute our plan while we complete this important search for a new CEO."
Sirius also announced today that at the end of this month it will expand in-vehicle testing of its service to six additional markets. This vehicle testing is designed to complete the evaluation of all aspects of the company's product and transmission, distribution and system capabilities, including retail sales support, installation, subscriber management and billing, customer service and communications. This phase is the final element of Sirius' comprehensive test program, after which the company expects to determine its commercial launch date, which had previously been scheduled for year-end. Sirius will update investors on the status of its commercial launch on a public conference call on Wednesday, November 14th. Conference call details will be announced separately.
As of September 30, 2001, Sirius had cash on hand, including restricted investments, of $392 million, sufficient funds to operate well into the fourth quarter '02.
From its unique tri-satellite system orbiting directly over the U.S., Sirius (http://www.siriusradio.com) will broadcast up to 100 channels of digital quality radio to motorists throughout the continental United States for a monthly subscription fee of $12.95. Sirius will deliver 50 channels of 100% commercial-free music in virtually every genre, and up to 50 channels of news, sports, talk, comedy and children's programming. Sirius has exclusive alliances to install AM/FM/SAT radios in Ford, Chrysler, BMW, Mercedes, Jaguar, Volvo and Jeep(R) vehicles. Kenwood, Panasonic, Clarion and Jensen satellite radios, including models that can adapt any car stereo to receive Sirius, as well as home and portable products, will also be available at retailers such as Circuit City and Best Buy.
Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, future events or performance with respect to Sirius Satellite Radio Inc. are not historical facts and may be "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, and, accordingly, such statements involve estimates, assumptions and uncertainties which could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, any such statements are qualified in their entirety by reference to the factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2000. Among the key factors that have a direct bearing on our results of operations are the unavailability of radios capable of receiving our service and our dependence upon third parties to manufacture and distribute them; the potential risk of delay in implementing our business plan; the unproven market for our service; and our need for additional financing.
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|Date:||Oct 16, 2001|
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