Toast publisher Roxio reported a net second quarter loss of $1.8 million yesterday.

Net revenues for the quarter – which ended September 30 – was $27.9 million, compared with $30.5 million in the year ago quarter. The company recorded a net loss of $1 million in that year-ago quarter.

Roxio president and CEO Chris Gorog said: "As we expected, retail has become the lion's share of Roxio's revenues, and despite the challenging retail market globally and the fact that we are at the end of our product cycles, our retail business grew 26 per cent over the prior year."

"This growth did not, however, offset the dramatic year-over-year drop in our OEM business, caused by flat PC shipments and rapidly declining ASPs."

The company predicts third-quarter revenues of $25 million, returning a net loss of $2.4 million. Roxio predicts revenues of approximately $117 million and hopes to end the year with $45 million in cash and investments.