Napster trims quarterly loss

Napster Inc., the pioneer of music downloading, said its fiscal first-quarter loss narrowed from a year earlier as it gained subscribers and decreased sales and marketing costs. Shares surged 14%.

The net loss shrank to $4.24 million, or 10 cents a share, in the period that ended June 30, from $9.82 million, or 23 cents, a year earlier, the Los Angeles-based company said.

Shares of Napster rose 39 cents to $3.26 in extended trading after the earnings announcement.