Earnings Call Excerpt
Napster, Inc. (NAPS)
F1Q09 Earnings Call
August 11, 2008 5:00 pm ET
Executives
Alex Wellins – Investor Relations – The Blueshirt Group
William Christopher Gorog – Chairman and Chief Executive Officer
Suzanne M. Colvin – Vice President, Finance and Interim Chief Financial Officer
Analysts
Michael Olson – Piper Jaffray
Leland Westerfield – BMO Capital Markets
Alan Davis – D. A. Davidson & Co.
Justin Patterson – Morgan, Keegan & Company, Inc.
Barbara Coffey – Kaufman Bros.
Presentation
Operator
Welcome to the Napster first quarter fiscal 09 conference call (Operator Instructions) I would now like to turn the conference over to Alex Wellins of The Blueshirt Group.
Alex Wellins
Thanks everyone for joining us on today’s call. With me today are Napster’s Chairman and CEO, Chris Gorog and Suzanne Colvin, the company’s Interim CFO. Today, after the market closed Napster issued financial results for the first quarter of its fiscal 2009. The earnings release referenced in this conference call can be accessed from the investor relations section of Napster’s website at Napster.com as can a webcast of this call.
I’d like to remind you that during the course of this conference call Napster management will make forward-looking statements including predictions and estimates. These statements, including any statements regarding the company’s market position, subscribers, launch and progress of the company’s MP3 store, interoperability with popular music playback devices including cellular phones, relationships with wireless carriers and other partners, expectations for future revenues, operating costs, subscriber acquisition costs, gross margin, cash flows and net losses and the strength of the Napster brand, involve a number of risks and uncertainties.
Actual results may differ materially from any future performance suggested in the company’s forward-looking statements. We refer you to the company’s Form 10Q for the quarter ended June 30, 2008 as filed with the SEC today for important risk factors that could cause actual results to differ materially from those contained in any forward-looking statements. We expressly disclaim any obligation to update this forward-looking information.
With that said I’ll turn the call over to Chris.
William Christopher Gorog
Napster delivered solid first quarter revenues of $30.3 million roughly flat to last quarter and reflecting our normal sales pattern at the beginning of the summer season. The company delivered its fifth consecutive quarter of positive cash flow in Q1 highlighting our deep focus on managing the bottom line. The big story in Napster’s first quarter was, of course, our launch of the largest MP3 catalog in the industry. Our goal in converting our entire track sales business in the U.S. to this no DRM format was quite simply to make Napster more attractive, accessible and enjoyable to the broadest audience possible.
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