Toast Titanium maker
announced its financial results for its first financial quarter 2004, which ended June 30, 2003. The company reported net revenue of $24.2 million, with net loss of $370,000. For the same quarter a year ago, Roxio posted revenues of $32.3 million and a net loss of $1.2 million. The results are in-line with the company’s estimates and with analysts’ expectations.
Roxio Chairman and CEO Chris Gorog noted that development of Napster 2.0, a new commercial online music download service, is on track for launching this Christmas. Initially, Roxio didn’t expect Napster 2.0 to launch until March of 2004.
Roxio offered second quarter guidance of $21.5 million in revenue, with net losses expected of about $0.56 per share — harsher than analysts’ projections. Roxio cited weak consumer software sales and an earlier-than-expected launch for Napster 2.0. The company’s stock was down on the news, off more than 10 percent in Friday morning trading.
Roxio CFO Elliot Carpenter explained that the company’s operational results and balance sheet — $63 million in cash and short term investments — reflect recent maneuvers like the purchase of Pressplay — the underlying technology that Roxio is using to power Napster — and gains from sales of its GoBack product to Symantec.
In mid-July at the Macworld CreativePro Conference & Expo, Roxio offered MacCentral
a sneak preview
of Toast 6 Titanium, a forthcoming version of the company’s CD and DVD authoring software that offers further integration with digital audio and video and numerous other enhancements. The company plans to roll out the software’s retail release in early September.