shares Monday jumped more than 10%, or 47 cents, to $4.96 following the company's higher revenue guidance.
The Santa Clara, Calif.-based company late Friday raised its forecast for software revenue to approximately $14.5 million in its third quarter ending Dec. 31. Previous guidance was for revenue of $14 million.
Roxio also said it expects "a very substantial increase" in revenue during the next quarter of its 2004 fiscal year.
The company cited strong sales of its Easy CD & DVD Creator 6 and Toast digital media software. Roxio expects revenue for its online music business to be about $3.5 million in the current quarter.
Roxio acquired what was left of the trailblazing digital music service Napster and relaunched it as Naptser 2.0, a fee-based service, in October. The company said it expects "Napster-related spending will decrease substantially going forward as we move away from our launch quarter and into steady-state marketing activities."
Roxio lost $ 9.2 million, or 47 cents a share, on revenue of $26.4 million in the third quarter of its 2003 fiscal year. The consensus estimate is for a loss of 95 cents a share in the current quarter, according to Thomson First Call.
The company is facing increased competition in the online music business from such major players as