The Orchard Enterprises posted a $785,000 loss, or 12 cents per diluted share on revenues of $13.4 million, for the three-month period ended June 30. That compares with the $720,000, or 62 cents per diluted, the company lost when revenues were $6.4 million in the fiscal second quarter of the prior year.

The company had 1.17 million shares outstanding on a weighted average basis during the second fiscal quarter 2007. In November, the Orchard merged with Digital Music Group Inc. resulting in nearly 6.3 million shares outstanding during the second fiscal quarter 2008, thus accounting for the widely divergent earnings, even though the net losses both periods are similar.

The GAAP financial statement reported by the Orchard uses just the Orchard financial performance from the second quarter of the prior year. If this year's performance is compared against a pro-forma consolidated statement of operations that also includes DMGI's results of a $1.1 million loss on $3.2 million revenue in the second quarter of last year, then overall, the Orchard cut last year's combined loss of $1.18 million on $9.5 million in revenues, to $785,000 in the current fiscal year.

The company said that during the second quarter, there were about 12 million paid downloads and 43 million paid streams. Also, during the quarter the company acquired TVT's assets in a Chapter 11 auction. The results were releases just before the close of trading and the company's stock price stayed flat at $5 a share.