Napster says it's seen strong subscriber growth and better-than-expected download sales, and as a result has raised its revenue guidance on its fourth-quarter, which has just ended.
This is the second time in five weeks that Napster has raised its forecast for fourth-quarter revenue. The company now expects revenue of between $16.5 million and $17.5 million.
One analyst suggested that the company was following a pattern of being conservative with its sales outlook, and then raising its forecasts. Adams Harkness analyst Steven Frankel told Reuters: "This is no different than the last several quarters. This is more a function of conservative guidance than anything else."
Reuters reports that analysts are expecting sales of about $14.6 million. According to Associated Press, analysts surveyed by Thomson Financial expect Napster to post a fourth-quarter loss of 63 cents per share on sales of about $14.5 million.