Shares of online service provider, Onstream Media Corp. (Nasdaq: ONSM) soared as much as 63 percent from Wednesday’s closing price in morning trading on Thursday. Shares traded as high as $1.36, up from Wednesday’s closing price of $0.83 per share.

For the 12 months ended September 30, 2010, Onstream reported a net loss of $9.3 million, or $1.20 per share, down 21 percent from a net loss of $11.8 million, or $1.63 a share in fiscal 2009. Revenue for the year fell 1.4 percent to $16.7 million compared to last year. Revenue from Onstream Media’s Digital Media Services Group, which includes Webcasting and hosting services increased 1.6 percent to $7.9 million, compared to FY 2009.

“Despite historically lower fourth quarter revenues due to seasonality and overall challenging economic conditions, Onstream posted revenue increases in its fourth quarter, as compared to the comparable prior year period,” said Onstream Media’s President and CEO, Randy Selman in a statement. “We also achieved a new milestone — for the first time in our history, we posted two consecutive quarters of positive cash flow from operating activities, before working capital changes.”

Onstream’s fourth quarter revenue increased 8.9 percent to $4.1 million, from $3.7 million in FY 2009. Cash flow from operating activities (before changes in current assets and liabilities) was approximately $44,000 in Q4, and $188,000 in Q3.

Onstream Media Corp. provides live and on-demand Internet broadcasting, corporate web communications and virtual marketplace technology to customers including Dell, Disney, Georgetown University, National Press Club, PR Newswire, Shareholder.com (NASDAQ), Sony Pictures and the U.S. Government.

Shares of ONSM are up about 14 percent over the past three months.