Napster (Nasdaq: NAPS) today reported financial results for its fiscal first quarter ended June 30, 2007.

Napster (Nasdaq: NAPS) today reported financial results for its fiscal first quarter ended June 30, 2007.

“Napster hit record revenues of $32.3 million, posted its first quarter of positive cash flow and substantially narrowed its loss on a sequential and year-over-year basis,” said Chris Gorog, chairman and CEO of Napster. “Generating positive cash flow is a significant milestone for Napster as we continue our drive toward profitability. Napster has substantially lowered its subscriber acquisition costs, and the benefits are clear in our results. With Napster now generating cash and with over $67 million on our balance sheet, we believe we are in a strong position to drive our business forward for the foreseeable future and are well positioned to maximize the opportunity presented by the hundreds of millions of Napster-compatible cell phones that are projected to hit the market.”

Net revenue for Napster’s first quarter of fiscal 2008 grew to $32.3 million, up 15 percent from $28.1 million in the prior year quarter and up from $29.1 million in the fourth quarter of fiscal 2007. Net loss for the first quarter of fiscal 2008 was $4.2 million, or $0.10 per basic and diluted share, compared to a net loss of $8.5 million, or $0.20 per basic and diluted share, in the fourth quarter of fiscal 2007 and to a net loss of $9.8 million, or $0.23 per basic and diluted share, in the first quarter of fiscal 2007.

Napster ended the first fiscal quarter with $67.1 million of cash, cash equivalents and short-term investments, an increase of $600,000 from the prior quarter. Excluding the anticipated decrease in university subscribers, Napster’s paid subscriber base decreased a net 2.5% in the first quarter reflecting normal summer seasonality. First quarter subscriber results incorporate the loss of 40,000 university subscribers partially offset by certain foreign mobile subscribers that had not been reported to Napster by its partners as of March 31, 2007.

Read the complete Press Release