RealNetworks posts profit
RealNetworks reported an unexpected third-quarter profit after its expansion into mobile-phone products spurred sales.
The Seattle company, owner of the Rhapsody online-music service, said its profit dropped nearly 90 percent to $4.3 million, or 3 cents a share, from $42.2 million, or 24 cents a share, a year ago, when its results were boosted by a $61.9 million payment from Microsoft in an antitrust settlement. Third-quarter sales rose 55 percent to $145.1 million.
Analysts in a Bloomberg survey had projected a 1-cent loss.
RealNetworks shares fell 2 cents to $6.56 Tuesday, before the results were released. In after-hours trading, the stock fell 26 cents more, to $6.30. The stock is down about 40 percent this year.
RealNetworks, which makes video players and music services for personal computers, is extending its products into the mobile-phone market. Chief Executive Officer Rob Glaser acquired three companies in that area in the past year, including WiderThan, a provider of ringtones and music for phones.
Third-quarter games revenue rose 28 percent, while music revenue increased 24 percent, and technology-products-and-solutions revenue soared 377 percent largely because of the WiderThan acquisition. Media-software-and-services revenue fell 14 percent from a year earlier.
Excluding costs such as stock-based compensation, fourth-quarter profit will be 6 cents to 7 cents a share on revenue of as much as $157 million, the company said. Analysts had estimated 7 cents in profit and $159 million in revenue.
Reuters provided the breakdown by sector of RealNetworks’ revenue.
RealNetworks’ results
Dollar figures in thousands, except per share; parentheses denote losses
Sept 30
3rd QTR
2007
2006
CHG
Profit
$4,342
$42,153
-89.7
Per share
0.03
0.24
-87.5
Revenue
145,095
93,676
+54.9
9 MOS
2007
2006
CHG
Profit
$45,630
$105,914
-56.9
Per share
0.27
0.59
-54.2
Revenue
410,738
269,687
+52.3