Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
A bigger push for mobile commerce and overseas subscribers has Napster forecasting a successful end to the 2008 fiscal year. Annual revenue is forecast to rise by 14% and 7% in the fourth quarter.
Continued international expansion and a bigger push into mobile commerce have Napster Inc. forecasting a successful end to the 2008 fiscal year.
For the current fiscal year, Napster, No. 108 in the Internet Retailer Top 500 Guide, projects revenue will total about $127 million, an increase of 14.3% from revenue of $111.1 million in the prior year. The company also expects to post fourth quarter revenue of $31 million, an increase of 6.5% from revenue of $29.1 million in Q4 of the previous fiscal year.
“We are pleased to have delivered solid year-over-year revenue growth of 14% as well as positive cash flow throughout fiscal 2008,” says Napster chairman and CEO Chris Gorog.
Napster, which expects its worldwide subscriber base to reach approximately 760,000 this fiscal year, says the foundation for future growth will come from mobile commerce and expansion overseas. For example, AT&T; plans to make Napster Mobile available to more than 12 million additional customers beginning this summer. Napster Mobile, which includes access to a catalog of more than five million songs and personalized content such as ringtones, already is available to subscribers in seven countries, Napster says.
“Given the recent launches with mobile carriers in the United Kingdom, Italy and Chile, Napster Mobile is now available to more than 214 million customers,” Gorog says.