Shares in Napster Inc. closed up 4 percent Wednesday after the company said its fiscal fourth-quarter loss was nearly cut in half, beating Wall Street estimates.

Napster posted a loss of $4.3 million, (-10 cents per share), in the three months ended March 31, compared to a loss of $8.5 million (-20 cents per share) in the same period a year earlier. Analysts polled by Thomson Financial expected a loss of 13 cents per share.

Sales for the Los Angeles-based online music retailer rose 6 percent to $30.8 million, also eking by Wall Street’s predictions of $30.7 million.

Napster says it ended the quarter with about 760,000 paid subscribers and forecast first-quarter revenue will range between $30 million and $31 million.

Shares in Napster closed up 3.7 percent to $1.69 but quickly retreated, trading off 2.4 percent to $1.65 in after-hours trading.