This excerpt taken from the XMSR DEFA14A filed Oct 23, 2007.
So OEM is a centric part of XMs strategy, but penetrating into peoples homes and pockets can be just as valuable. what can we expect to see for the year ahead?
I think for the year ahead youre going to see dense penetration and growth in the OEM marketplace and I think youre going to see more stability in the retail marketplace.
Obviously its been a number of quarters in a row where its been negative year-over-year growth, not only in the retail sales on a gross basis but the industry has been seeing negative year-over-year net additions on a quarterly basis on the combination. That has not been helping and certainly has led to the drop in stock price over the past 18 months or so. I think when you look at what most analysts are projecting, they are actually projecting some level of inflection point in the sense that you be likely returning to year-over-year net ad growth from year-over-year net ad reductions. And so the principle driver as a business model comes from OEM, but with a continuing level of ongoing net additions from the retail to keep that marketplace solid.