While telecom is seeing a continued down turn, many have looked at commercial satellite applications as potential new markets for components and subsystems. One application that showed promise was satellite radio. However, after less than a year on the market the nation's only two satellite radio companies, Sirius and XM are attempting to get new financing before they run out of money.

According to the Associated Press, shares of Sirius Satellite Radio fell significantly after the company said it was not signing up subscribers as fast as predicted. XM Satellite has exceeded early subscription forecast by signing up 136,000 customers. XM had forecast 130,000.

Even with the somewhat better than forecast signups, XM said it would run out of cash early next year and would have to discontinue operations if it did not raise additional funds.

Sirius has reported it needs another $300 million by the middle of 2003 or it would have to file for bankruptcy.

Sirius spent $1.9 billion on its network of three satellites and 92 land basestations. Sirius reported a second quarter loss of $124.6 million, or $1.62 per share, on revenue of $70,000.

XM satellite spent about $1 billion on its satellite and ground station network.