Ur not factoring in any royalty charges or internet charges for Q3? I think with churn and self pay holding, there is an outside shot at positive earnings.
For you to discount the notion entirely, is a bit of a leap of faith, based on new revenue steams. How can you apply old metrics, to any entirely different revenue base? Plus, this New GM deal might start to impact there bottom line, as they are counted at sale, meaning the cost of the radio was already been factored in. Hence the jump in car sales from Q2 to Q3 will add revenue, and since Chrysler and Ford are barely back to churning out cars, the need for new radios still wont be as high as last year even. Basically in Q3 and Q4 a lot of pend up demand for cars, but the need to replace the inventory isnt yet there. Remember, there were hundreds of lots that from Chrysler that will never need new cars again. Hence lowering the total cost to add new radios to newly built Chrysler cars at this time. Not to mention if subs go positive again. Which they very well could. Now comparing around 1 year out, so Q3 08 was terrible new car sales numbers. Just like Q1 and Q2 of 09 was. Now have 3 back to back quarters of declining car sales, hence the pendelum will begin to start impacting promo subs again, this time to the positive.