Napster reported a wider fiscal fourth quarter loss due to the impact of a one-time gain in the year-ago quarter, an Associated Press report said.
Still, the online music service's results met Wall Street expectations, the report added.
The Associated Press report said for the period ended March 31, the company's net loss was $8.5 million compared with $4.4 million in the year-ago period.
Excluding the after-tax impact of a $5.4 million gain from last year's sale of Roxio, its CD-burning software division, Napster narrowed its fourth-quarter loss to $1.3 million, the report said.
Revenue rose 9% to $29.1 million, compared with $26.8 million in the same quarter last year, it added.
Wall Street's consensus estimates anticipated a loss of $0.20 a share and $27.9 million in revenue, according to Thomson Financial, the report said.
Napster said it closed the quarter with a worldwide paid subscriber base of 830,000, including subscribers at universities and some 225,000 former AOL Music Now users.
The number of paid Napster subscribers rose 37% from the year-ago quarter, the company said.