Earlier today, Napster (NAPS) reported corporate balance sheets. According to these fiscal results, net revenue for the second quarter of fiscal year 2008 has grown to $31.6 million, an increase of 24% from the $25.5 million revenue reported during 2007. Net loss for the second quarter of fiscal 2008 narrowed to $5.1 million, or $0.12 per basic and diluted share. Compared to the net loss of $9.0 million or $0.21 per basic and diluted share in the second of 2007, this represents a significant increase in the company’s cash flow.
Napster ended the second fiscal quarter with $68.4 million of cash, cash equivalents and short-term investments, an increase of $1.3 million from the prior quarter. As of September 30, 2007, Napster had approximately 750,000 paid subscribers. Since June 30, 2007, subscribers have decreased from 770,000 to 750,000, an anticipated decrease based on historical quarterly patterns.
Chris Gorog, Napster’s chairman and CEO, stated “Napster grew quarterly revenues 24 percent year-over-year and generated a record $1.3 million in positive cash flow in the second quarter while substantially narrowing our net loss year-over. We recently launched Napster 4.0, the web-based version of our flagship product, to strong reviews. Napster Mobile is maintaining its leadership position as the global music solution of choice among the world’s leading carriers, and AT&T recently announced over-the-air availability of Napster, providing instant access to music for its wireless customers. We remain focused on our strategy of providing our customers with access to unlimited music anywhere, anytime.”
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