Shares of Napster Inc. took a dive in after-hours trading Monday after the online music service reported a slightly larger first-quarter net loss than a year ago, as well as a decline in paid subscribers.

The Los Angeles company said after market close that it lost $4.38 million, or 10 cents a share, for the quarter ended June 30, compared to a $4.24 million loss (-10 cents) for the same period a year ago. Revenue fell 6 percent to $30.3 million.

Reuters Estimates said that analysts on average had forecast a loss of 9 cents per share on revenue of $30.51 million.

Napster, which has been hurt by competition from Apple Inc’s iTunes, said the number of paid subscribers fell 7 percent to 708,000 during the quarter.

Napster said it expects revenue to be flat at $30 million in the second quarter, but anticipates that its new mobile phone-based service, Napster Mobile, will help increase revenue in the second half of its fiscal year.

Shares of Napster fell 10 percent to $1.35 in after-hours trading after closing up 10 cents, or 7 percent, to $1.50 on the Nasdaq prior to the earnings report.