Earnings: Napster Revs Up 5.7 Percent; Net Loss Narrows
This story was written by Joseph Weisenthal.
Will this be enough to fend off the barbarians at the gate? Music subscription service Napster (NSDQ: NAPS) has reported quarterly revenue of $30.7 million, a modest increase of about 5.7 percent from $29.1 million in the year-ago quarter. Losses from continuing operations slimmed $4.3 million from ($.10 per share) from $7.5 million ($.17 per share). The loss was narrower than the $.13 analysts had expected them to lose. For the coming quarter, the company expects relatively flat revenue and EPS, so there are no visions of the download store moving the needle too soon.
The headline of the release touts loudly the fact that the quarter was cash flow positive, but don't lose your hat over this. At least in past quarters the company was able to show positive cash flow due to a delay in making royalty payments. Eventually it's going to have to make a big one-time lump sum to erase this.
Release | Webcast (5:00 PM ET)
By Joseph Weisenthal