Online music conduit
upped its sales guidance Thursday and said its fourth-quarter loss will be narrower than feared.
Napster said it generated sales of more than $26 million in the period, which ended March 31. Analysts surveyed by Thomson First Call had been forecasting sales of $25 million, on average.
On the bottom line, Napster said its loss will be "substantially narrower" than previously predicted. Analysts were looking for a loss of 36 cents a share in the quarter. The company said it ended the period with more than $103 million in cash and short-term investments and a total subscriber base of 600,000 users.
"Napster's premium subscriber growth was extremely strong during our most recent quarter, resulting in revenue that exceeded our expectations," it said. "We significantly reduced our operating expenses, continuing to deliver on our commitment to substantially decrease our cash burn."
Shares added 37 cents, or 11%, to $3.74 early Thursday.