XM Satellite Radio (XMSR) went into orbit for the second time this week as its retail business got a boost from regulators.
The struggling satellite radio company said Friday that the Federal Communications Commission cleared retail sales of three XM radios that had been off the market because of questions about signal-emission limits.
Washington, D.C.-based XM said the Audiovox Xpress, Delphi RoadyXT and XM Sportscaster plug-and-play radios should be available at retail for the holidays. XM called the radios "three of XM's primary products at retail."
XM shares, which last month hit a 52-week low of $9.63, rallied 5% in early trading. On Tuesday, XM
surged 20% on the back of a Bear Stearns upgrade. Even so, the stock has lost half its value this year as investors worry about the company's slowing growth and hefty losses.
Friday's FCC news comes as XM and rival
navigate their way past unexpected regulatory hurdles at retail. The companies have done much of their business through partnerships with big carmakers, but more and more sales have been coming through purchases at places such as
The FCC threw a wrench into that channel this spring by saying certain FM transmitters used by the companies' after-market radios failed to stay within emission limits.
The emission issue is specific to radios that use FM signals to transmit programming to devices such as car radios. This FM signal allows users to play satellite radio through their car or conventional audio equipment. FM emissions that are too strong could cause interference with other radio channels.
In April, the FCC cited the Delphi Skyfi2 XM radio for emission issues. The agency last month requested emissions-related information on six XM radios -- the Sportscaster, Roady XT, MyFi, Airware, Tao and Roady 2 devices. The FCC also found the Audiovox Xpress to be noncompliant, XM said in an Aug. 11 federal filing.
Last month, Sirius said manufacturer Kiryung Electronics was cleared to resume distributing the Xact Visor, Sirius One and Sportster Replay radios.
On Friday, XM rose 70 cents to $13.60, and Sirius added 3 cents to $4.09.