On Feb. 8, Napster
- Revenue increased by 20.6% to $28.4 million, driven by strong subscriber growth and its launch of Napster Japan in October of 2006.
- The recent acquisition of AOL's music subscription business is expected to increase the company's subscriber base by more than 50%.
- Although Napster still is not turning a profit, margins significantly improved year over year and revenue is expected to exceed $26 million for next quarter.
- Napster is a one-star stock on Motley Fool CAPS, our interactive stock database.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$28,372 |
$23,532 |
20.6% |
|
Net Profit |
($9,510) |
($17,007) |
N/A |
|
EPS |
($0.22) |
($0.40) |
N/A |
|
Diluted Shares |
43,217 |
42,994 |
0.5% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
30.1% |
26.8% |
3.3 |
|
Operating Margin |
(33.4%) |
(77.6%) |
44.3 |
|
Net Margin |
(33.5%) |
(72.3%) |
38.8 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$80,905 |
$111,439 |
(27.4%) |
|
Accounts Rec. |
$2,210 |
$3,667 |
(39.7%) |
|
Inventory |
N/A |
N/A |
N/A |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$2,434 |
$4,777 |
(49.0%) |
|
Long-Term Debt |
N/A |
N/A |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
($25,375) |
($39,993) |
N/A |
|
Capital Expenditures |
$659 |
$3,392 |
(80.6%) |
|
Free Cash Flow |
($26,034) |
($43,385) |
N/A |
Find out why Fools always follow the money.
Related Companies:
-
RealNetworks
(NASDAQ:RNWK) -
Apple
(NASDAQ:AAPL) -
Yahoo!
(NASDAQ:YHOO)
Related Foolishness:
- You've Got Napster
- Lawsuit Threatens Napster, Annoys Giants
- Digital Music's Double Trouble
- Napster's New Gig
Yahoo! is a Motley Fool Stock Advisor recommendation. To see all the reasons why, take a free 30-day trial today.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
