here's Homer's reply to our discussion about capex on the recent sat-launch:
first my question to homer:
Hey Homer . . .
little help please . . .
what costs, if any (I throw that in for Irish) are yet to be accounted for with the recent sat launch?
please refer to daily intraday thread for 7/21/09 . . around Page 5
just trying to figure what capex costs if any will show up in Q3
now Homer's answer:
That's a good question... the problem I see is that the launch took place after Midnight on July 1st in Kazakhstan, which is the start of Q3; but it was after 4pm in EDT, still in Q2. LOL
I do believe that the bulk of the expenses had to be paid just prior to launch, which implies Q2. There may have been some more expenses booked in Q3 -- plus there is milestone payments which can last for years.
I would guess that the bulk of the costs will be booked in Q2 -- with some carryover into Q3. Knowing how much this is, will be nearly impossible without Sirius actually saying so on their next conference call.
There will be some capex in Q3 to account for, with the construction of FM-6 still underway; plus it depends on when XM will pay the remaining amounts on XM-5, which I believe there are some remaining. I believe they may have deferred them into 2010... but those dates always seem to be fluid.
hey john/163888 . . if you're out there . . better start getting those asymetrical stones stockpiled for the CC . . lol