Directed Electronics believes it will receive 35% to 40% less in revenues from its Sirius business this year.
The manufacturer, which says it is the largest supplier of aftermarket satellite radio receivers based on sales, has updated its guidance to investors.
Overall the company believes it will have sales in the range of $475 million to $510 million in fiscal 2007, an increase of 8-16%. But its gross sales in satellite products, it believes, will decline 11% to 22%, revenue will drop and the company’s “top line” growth in its core business will be offset by declining satellite radio sales.
It noted that growth in Sirius subscribers had slowed this year.
Lower-priced receivers are composing a meaningfully larger percentage of total satellite radio sales than in the company’s original plan, it said. “This change in guidance is driven principally by a mix shift to lower-priced units and an approximate 15-20% reduction in planned unit volume.”