Napster Snoozing Less

Updated from 5:02 p.m. EST

Napster (NAPS Quote) posted a loss for the quarter on Wednesday, but the bleeding wasn't as bad as what analysts projected.

For the second quarter, Napster lost $9 million, or 21 cents a share, improving from its loss of $13.6 million, or 32 cents a share, in the same period last year. Analysts polled by Thomson First Call had forecast a greater loss of 27 cents a share.

The online music company matched the consensus revenue forecast, posting $25.5 million, up 9% from $23.4 million in sales a year ago.

Shares rose 6 cents in late trading to $4.51, almost making up for losses during the regular session.

While there has been much speculation about if and when the company will be acquired - the music firm has hired UBS to help it review its options - Napster CEO Chris Gorog said on the quarterly call with financial analysts that he would not discuss the situation until there is something to announce.

Instead, Gorog highlighted the projected growth in music-enabled cell phones on the call, and reiterated how the trend "will provide a very significant growth driver for Napster going forward."

The company has made recent deals with NTT DoCoMo (DCM Quote) in Japan and Cingular, jointly owned by AT&T (T Quote) and BellSouth (BLS Quote), to reach more mobile customers.