Napster (NSDQ: NAPS) narrowed its net loss to $2.8 million ($0.06/share) in Q4, compared to a net loss of $9.5 million ($0.22 /share) last year. Revenues continued to grow, reaching $32.8 million, up 15 percent from Q406’s $28.4 million. The company may also be starting to arrest subscriber losses, which were down less than 1 percent compared to Q307. The online music service also offered a look at its with cash holdings on a consecutive basis: by the end of the quarter, Napster had $69.3 million in “cash, cash equivalents and short-term investments,” an increase of $900,000 from the prior quarter.

Earlier this week, Napster bumped up subscription prices from $9.95 per month to $12.95 monthly - a 30 percent hike. Aside from that, Napster has also been focusing on building up its mobile services outside the U.S., particularly in Japan and Latin America. For the full year, the company’s revenues were up about 18 percent to $96.6 million from $89.1 million. However, total cost of revenues were also up, rising from $57.4 million to $68.4 million, a 19.2 percent increase.

Earning release | Webcast (5:00 PM ET)

-- Conference call: Chairman and CEO Chris Gorog began by saying he believes that the shift to the MP3 format will make things less complicated for consumers and for Napster, as the company prepares to offer DRM-free downloads at its download store within the first six months of this year. He twice boasted that Napster reduced its ad spend in Q4, yet still managed to generate more subscription trials, which he presented as proof that the company’s subscription is working. He believes the introduction of MP3 sales will attract more users to its subscription service.

-- Mobile moves: Early traction in mobile has gotten off to a slower start than Gorog and company had hoped because the number of Napster over-the-air compatible devices that hit the U.S. was lower than promised; delays in carrier launches also hindered sales. Napster’s expectations for new devices coming to market are not diminished, however. Gorog says the company believes “millions” of handsets will soon be Napster-accessible.