The Sirius XM satellite tv for pc SXM-7 fails, was constructed by Maxar and launched by SpaceX
The SXM-7 satellite built by Maxar Technologies for SiriusXM can be seen here at the Maxar manufacturing facility in Palo Alto, California.
A recently launched Sirius XM satellite suffered “failures” during preliminary tests in space, the company said in a securities application filed on Wednesday. The cause of the malfunction was not disclosed.
“Events occurred during the in-orbit testing of SXM-7 that resulted in the failure of certain SXM-7 payload units. An assessment of SXM-7 is ongoing. The full extent of the damage to SXM-7 is not yet in progress known.” Sirius XM said on the file.
Maxar Technologies built the satellite, which SpaceX then launched in December. A Sirius XM spokesperson told CNBC that the cause of the failure was not related to the SpaceX launch of the satellite. The spokesman said Sirius XM was able to communicate with and maintain control of the satellite.
Sirius XM declined to comment on whether SXM-7 will be recoverable.
“SXM-7 should complement the existing fleet of SiriusXM satellites,” Sirius XM said in a statement. “Construction of our SXM-8 satellite is underway and this satellite is expected to be placed in geostationary orbit later this year.”
Sirius XM stocks were up as much as 24% earlier in the day but then gave up most of the gains, up around 7% in midday trading. Maxar’s stock was down as much as 8% from the previous close.
Maxar and SpaceX declined CNBC’s requests for comment.
SpaceX launched the SXM-7 satellite on a Falcon 9 rocket on January 4, with Sirius-XM beginning testing the satellite in orbit. The Company does not expect current satellite broadcast service to be affected as the XM-3 and XM-4 satellites are functioning normally and the XM-5 satellite is in orbit as a replacement.
Maxar said in its own file on Wednesday that it is helping Sirius XM “troubleshoot and diagnose the situation in order to assess the extent of damage to the SXM-7 satellite.”
Sirius XM announced that SXM-7 has purchased $ 225 million total insurance coverage for the satellite through launch and its first year of operation in space.
“We have notified insurers under these guidelines of a possible claim related to SXM-7,” said Sirius XM.
A Falcon 9 rocket will launch Sirius XM’s SXM-7 satellite in December 2020.
Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.