Monday, online music company Napster Inc. (NAPS) reported a wider loss in the first quarter, hurt by lower revenues reflecting the beginning of the summer season. The company also provided second quarter revenue guidance.
The Los Angeles, California-based internet company posted a first-quarter net loss of $4.38 million or $0.10 per share, compared to a net loss of $4.24 million or $0.10 per share in the year-ago period.
On average, eight analysts polled by First Call/Thomson Financial expected the company to report a loss of $0.09 per share for the first quarter.
Net revenues for the first quarter decreased to $30.32 million from $32.25 million in the prior year quarter. Analysts expected revenues of $30.51 million for the first quarter.
Commenting on the future outlook, Suzanne Colvin, interim chief financial officer, said,"We expect our second fiscal quarter revenue to be approximately $30 million depending on the pace of our Napster Mobile roll outs, including new compatible handsets and carrier promotions, as well as other new marketing initiatives."
Analysts currently expect the company to report revenues of $30.89 million for the second quarter.
NAPS closed Monday's trading session on Nasdaq at $1.50, up $0.10, or 7.14%. However, in the after-hours, the shares lost 15 cents or 10.00%.
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