Napster continues to boost revenues, but profit and licensing issues remain.
Ahead of a formal earnings call, the company pointed to recent-quarter revenues of $31 million, a figure that falls at the high end of earlier guidance. That contributes to a recordrevenue level of $127 million for the fiscal year ending March 31st, a figure boosted by a reported subscriber base of roughly 760,000.
The group also pointed to a third-place, revenue-based ranking among competing music stores. The ranking was recently offered by MultiMedia Intelligence head Mark Kirstein, formerly an analyst at both iSuppli and In-Stat.
The revenue picture offers some encouragement, though profitability and licensing issues are clouding the picture. During the recent, third quarter ending December 31st, Napster posted a loss of $9.5 million, a substantial sum. On the positive side, that represents a narrower drop from a year-ago quarterly loss of $17.0 million.
Separately, the company is now pushing to convert its catalog into a DRM-free offering. The company initially offered guidance for a transition this quarter, though recent executive comments suggest a slower-than-expected licensing process. On Thursday morning, a representative reaffirmed a current-quarter transition schedule to Digital Music News.