Roxio Surges on Outlook
By TSC Staff
3/15/2004 10:13 AM EST
Roxio (ROXI:Nasdaq) shot higher Monday after the company raised revenue guidance, citing strength in its CD-software and Napster online music segment.
Roxio expects Napster revenue to be $5.5 million in the quarter, while revenue in its software segment should be $26 million. Analysts surveyed by Thomson One Analytics had been forecasting combined revenue of $30.5 million.
The shares rocketed up 93 cents, or 22%, to $5.21.
"Roxio's improving financial results reflect a very strong debut for Easy Media Creator 7, which has garnered outstanding reviews and is currently the top selling digital media software in the nation," the company said in a release.
Napster, the former peer-to-peer network that gained fame in the late 1990s as a conduit for music piracy, was reborn in October 2003 as a pay-per-download site operated by Roxio, which covets the content for its CD-burning programs.
The company claims it is now the most popular Windows-only music download site on the Web, although it trails Apple's (AAPL:Nasdaq) iTunes site, which Monday said it has sold more than 50 million song downloads at about $1 each. |
