NEW YORK (Reuters) -- Sirius Satellite Radio Inc. said on Wednesday its second-quarter loss narrowed as it signed up more subscribers and revenue rose.
But shares fell 10 percent on Nasdaq, where it was the second most active issue. The company missed Wall Street estimates by a penny.
Sirius, a provider of music, talk and news channels including some that are commercial free, posted a loss of $111.8 million, compared with a loss of $124.6 million last year.
Sirius said revenue rose to $2.1 million from $70,000 last year. It ended the quarter with 105,186 subscribers, an increase of 55 percent from the first quarter.
But SG Cowen analyst Tom Watts said the subscriber total was slightly shy of his target of 106,000. Sirius also missed his estimate for a loss of 9 cents. "But they're in the ball park," he adding that the miss was small for an early-stage company.
Sirius mainly sells its service via car dealers and automakers such as DaimlerChrysler AG and Nissan Motor Co. Ltd.
"Going forward for the rest of the year we expect it to start getting some traction with Daimler Chrysler," Watts said.
Since Sirius just started selling portable satellite radios, Watts said he did not expect significant sales figures from that business in the second quarter.
Market leader XM Satellite Radio Holdings Inc., which has more than six times the subscribers of Sirius, began selling portable products long before its competitor.
The stock, which fell 20 cents to $1.75 Wednesday morning, has been among the most active on Nasdaq in recent months as the company restructured debt, firmed deals with car companies and introduced new products.
Traders said trading volume was unusually high for such a small stock due to the 1 billion shares outstanding, a large number, they said.