XM Satellite Radio added 321,675 subscribers in its first quarter...

million year-end subscriber goal, CEO Hugh Panero told analysts. XM said at quarter’s end its subscribers represented 83% of all Sirius and XM satellite radio customers, virtually unchanged from the 84% share XM said it had at the end of 2003. The statements apparently were in response to Sirius claims of strong March share inroads in terms of retail radio sales. For the first time, XM quarterly revenue exceeded fixed expenses, $43 million vs. $37.1 million, but Wall St. seemed to take the company to task for its net loss widening in the quarter by 39% even as revenue tripled. XM shares closed nearly $2 lower in Thurs. trading. Other XM disclosures: (1) XM has had ongoing talks with DirecTV on an existing marketing alliance, but has no progress to report about new activities, Panero said, responding to a question. (2) XM has been involved in “in- depth” negotiations with insurers, trying to resolve claims involving the solar power degradation problem that has drastically reduced the useful life expectancy of its 2 orbiting satellites, Chmn. Gary Parsons said. Indecency rules that apply to free over-the-air radio “are appropriate in some cases,” but there’s “a different set of rules that apply to satellite subscription services,” Panero responded to an analyst questioner. With satellite radio, “we have people that choose to pay a subscription; we have the ability to block out channels; and we can offer things as a premium service,” Panero said. Given those attributes, satellite radio may be a more appropriate venue than free over-the-air radio for shock jocks like Howard Stern, he said.