Down load: Fiscal Q4 loss for Napster
EmptyNapster reported a fiscal fourth-quarter loss that swelled significantly from the same period a year ago even as the results exceeded Wall Street expectations. The stock fell as much as 7% in after-hours trading once the results were released.
The online music company lost $8.5 million in the quarter, compared with a loss of $4.4 million last year on revenue that increased 9% to $29.1 million, better than Wall Street analysts expected.
Last year's results were boosted by a $5.4 million gain from the sale of Napster's Roxio CD-burning software unit.
The company's paid subscriber base increased 37% year-over-year to 830,000, including the 225,000 subscribers it inherited from the old AOL Music Now service.
Napster competes primarily with RealNetworks Inc., which recently said it had 2.7 million subscribers to its Rhapsody and other music services. And Amazon.com Inc. said Wednesday that it will open an online music store that takes aim at industry leader iTunes from Apple Inc.
Napster CEO Chris Gorog said Wednesday that his company boasts "the most popular on-demand music subscription service with healthy annual revenue growth and a significant decline in cash burn."
The company closed the fiscal year with $66.5 million in cash and equivalents, and it forecast $31 million in revenue for the current quarter.
"The company will remain deeply focused on bottom line improvement and will continue to capitalize on our strong market share position as we enter the new era of music-enabled cell phones," Gorog said.