XM ( XMSR) and Sirius ( SIRI) shares dipped again Thursday as the dueling satellite radio shops halted production of some devices.
Both companies said they received inquiries this spring from regulators concerning transmitters on some radios that may not comply with Federal Communications Commission rules. In response, the companies say they are working to resolve any potential problem and have suspended production of noncompliant radios. The news comes as the companies' shares have been hard hit by worries about their hefty spending. XM is off 56% this year and Sirius is down 40%. XM said in a filing Wednesday that it could not make assurances that the radio production halt wouldn't hit the company's financial performance. Sirius said in a filing Thursday that it didn't expect the radio problem to cause it to miss its financial guidance. The FM transmitters, used to send signals from so-called aftermarket satellite radios to buyers' existing car radios, aren't a problem on radios installed by automakers. XM shares fell 62 cents, or 5%, to $11.89 and Sirius shares dropped 11 cents, or 2%, to $4.02 in midday trading Thursday.