Roxio Inc, which makes CD-burning software, on Wednesday posted a third quarter net loss, but forecast a return to profitability on a pro forma basis in the fourth quarter.
Roxio, which recently bought patents and intellectual property of Napster for $5 million, posted a third-quarter net loss of $9.2 million or 47 cents a diluted share, including charges for amortization of intangible assets, compared with net income of $0.6 million, or 4 cents a year earlier.
Net revenue totaled $26.4 million versus $36.2 million a year earlier. Pro forma net loss was $7.4 million, or 38 cents per share, including about 21 cents related to the settlement of a lawsuit by former shareholders of Incat Systems.
Analysts on average had forecast Roxio to report a loss of 12 cents, according to Thomson First Call.
The third-quarter results compare with pro forma net income of $3.4 million, or 20 cents per basic and 19 cents per diluted share, for the same period of the prior fiscal year.
The company said it was forecasting a strong return to profitability in the fiscal fourth quarter on pro forma earnings per share of 19 cents and should exit the fiscal year with over $45 million in cash and cash investments. It said it expects new products will drive healthy revenues and increased profitability for 2004.