“Napster Inc.’s revenue increased fourfold during its third fiscal quarter as the company’s online music service continued to grow. The seller of online music services swung to a net profit for the quarter ended Dec. 31, though the profit stemmed from its Roxio consumer software division, which the company sold to Sonic Solutions just two weeks before the end of the period,” Dan Gallagher reports for CBS MarketWatch. “Continuing operations posted a loss that was deeper than the initial consensus forecast from Thomson First Call. A spokeswoman for Napster said some analysts had failed to account for the exclusion of the Roxio business, and had therefore set higher estimates that skewed the consensus figure.”
Gallagher reports, “The Los Angeles-based company’s shares jumped nearly 10 percent in after-hours trading, as Napster set a fourth-quarter revenue target above analysts’ current expectations. Napster’s share price climbed 76 cents in Wednesday’s after-hours trading after closing the regular session down 79 cents, or 9.1 percent, at $7.86. For the third quarter, Napster reported earnings of $12.8 million, or 36 cents per share, compared to a net loss of $25.6 million or 92 cents a share for the same period last year… For the fourth quarter, the company said it expects revenue of approximately $14 million. Analysts were anticipating revenue of $12.7 million for the period. Napster also raised its full-year revenue target to $43 million from a previous range of $35 million to $40 million.”
Full article here.
