(RTTNews) - Online music retailer Napster, Inc.
(NAPS) on Wednesday reported a narrower loss for the fourth quarter, helped by an increase in revenue and subscribers and lower expenses. The company also provided revenue outlook for the first quarter that is below current Street estimates.
The company posted a net loss of $4.3 million or $0.10 per share, compared to a net loss of $8.5 million or $0.20 per share in the prior year quarter.
On average, ten analysts polled by First Call/Thomson Financial expected a loss of $0.13 per share for the fourth quarter.
Net revenue for the fourth quarter increased 6% to $30.8 million from $29.1 million in the same quarter last year. Ten analysts had a consensus revenue estimate of $30.70 million for the fourth quarter.
Gross margin was $8.2 million or 26% of revenue, compared to $7.9 million or 27% of revenue in the year-ago quarter.
Total operating expenses for the quarter declined to $12.9 million from $15.9 million in the prior year quarter.
At March 31, Napster had about 760,000 paid subscribers, compared to 743,000 paid subscribers at December 31, 2007.
For fiscal 2008, the company reported a net loss of $16.5 million or $0.38 per share, compared to a net loss of $36.8 million or $0.85 per share in the previous year. Ten analysts expected a loss of $0.40 per share for the year.
Annual net revenue increased 15% to $127.5 million from $111.1 million in the preceding year. Ten analysts had a consensus revenue estimate of $127.30 million for 2008.
Looking ahead, for the first quarter of fiscal 2009, the company anticipates revenue of $30 million to $31 million, due to typical seasonal patterns. The company reported revenue of $29.1 million in last year.
The Los Angeles, California-based company also said it expects relatively flat operating expenses, losses, EPS and cash flow for the first quarter.
Ten analysts project a loss of $0.09 per share for the first quarter, while nine analysts estimate revenue of $31.58 million.
NAPS closed Wednesday's regular trading session at $1.69, up 6 cents or 3.668%. However, in the after-hours, the shares lost 4 cents or 2.37%.
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