Roxio Surges on Outlook

Roxio ( ROXI) shot higher Monday after the company raised revenue guidance, citing strength in its CD-software and Napster online music segment.

Roxio expects Napster revenue to be $5.5 million in the quarter, while revenue in its software segment should be $26 million. Analysts surveyed by Thomson One Analytics had been forecasting combined revenue of $30.5 million.

The shares rocketed up 93 cents, or 22%, to $5.21.

"Roxio's improving financial results reflect a very strong debut for Easy Media Creator 7, which has garnered outstanding reviews and is currently the top selling digital media software in the nation," the company said in a release.

Napster, the former peer-to-peer network that gained fame in the late 1990s as a conduit for music piracy, was reborn in October 2003 as a pay-per-download site operated by Roxio, which covets the content for its CD-burning programs.

The company claims it is now the most popular Windows-only music download site on the Web, although it trails Apple's ( AAPL) iTunes site, which Monday said it has sold more than 50 million song downloads at about $1 each.

More from Opinion

Elon Musk's Latest Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Latest Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Twitter Tirade Is the Dumbest Thing on Wall Street

Why Google's Search Momentum Won't Be Badly Hurt by New EU Rules

Why Google's Search Momentum Won't Be Badly Hurt by New EU Rules

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Time to Talk Tesla: What Happened This Week, Elon?

Time to Talk Tesla: What Happened This Week, Elon?