Napster, a pioneer of digital music, announced April 3, 2008 that it fiscal year 2008 ended in record revenues of $127 million and expects its fiscal 2008 fourth quarter revenue to total $31 million. Napster advised that the fourth fiscal quarter generated positive cash flow and is the fourth consecutive quarter of positive cash flow. The Company also announced that its worldwide subscriber base increased to approximately 760,000 as of March 31st of 2008.
Napster's revenues put the Company into the top three digital music companies in the industry, well ahead of competitors such as Amazon, eMusic and Zune Marketplace, according to Mark Kirstein who is a former analyst at In-Stat and iSuppli.
Chris Gorog, Napster's Chairman and COE said, "We are pleased to have delivered solid year over year revenue growth of 14% as well as positive cash flow throughout fiscal 2008. Our recently announced win for Napster Mobile with O2 UK continues to expand our global footprint by adding a significant new wireless carrier with more than 18 million subscribers in the UK. Last week’s news that AT&T plans to make Napster Mobile available to more than 12 million customers beginning this summer is another positive development for our service. Given the recent launches with world class mobile carriers in the United Kingdom (O2 UK), Italy (Telecom Italia) and Chile (Entel), Napster Mobile is now available to more than 214 million customers of these carriers in eight countries."
Chris Gorog continues to say, "We are also pleased to confirm that the rollout of our MP3 initiative is on track for the first half of calendar 2008. This effort is expected to dramatically expand the available market for Napster’s download sales to virtually any MP3 player or music phone, including the popular iPod and iPhone. We are beginning to see the long anticipated increases in available compatible devices that we expect to fuel our fiscal 2009 growth."
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