NEW YORK (CNNMoney.com) -- Shares of XM Satellite may be languishing, but chairman Gary Parsons emphasized Wednesday the growth potential for the industry and company.

XM Satellite (Charts) shares have plummeted more than 60 percent in the last year as the company has fended off fierce competition from rival Sirius Satellite Radio (Charts), which added shock jock Howard Stern to its lineup earlier this year.

But at the current price, there's "significant upside potential" for the stock, Parsons said. He made his remarks at a Goldman Sachs media conference in New York.

Fierce competition, rising costs and regulatory concerns have been pressuring the satellite radio business. Problems with devices meeting FCC regulations have also created inventory problems for the company in recent months.

But Parsons said the industry is well positioned for the long run, citing the rapid adoption of subscription radio services and the industry's underlying fundamental growth and growth potential.

He also said the company is getting over inventory problems created after some devices didn't meet FCC regulations. "We will be in pretty good inventory shape across the board for the holidays," he said.

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