RealNetworks Posts Net Loss; Music, Games Revenues Up

Authored by Mark Hefflinger on May 8, 2009 - 7:26am.

Seattle - RealNetworks (NASD: RNWK) this week posted a net loss for the first quarter, hampered by fluctuating exchange rates and RealDVD litigation costs, amid results that saw a 16% jump in music sales and a 3% rise from its games business. The company saw a net loss of $12.1 million, or 10 cents a share, and revenue fell 5% from a year ago, to $140.8 million; analysts had projected a loss of 6 cents a share.

Without currency fluctuations, the company said revenue would have actually been up by 1%.

RealNetworks disclosed that it has so far spent $6 million in its legal tussle with the Motion Picture Association of America (MPAA) over its DVD-copying RealDVD software, which also dragged down its results.

The company said its Rhapsody digital music service now counts 800,000 subscribers, having added 25,000 new users in the last quarter and 200,000 since the same period a year ago.

Related Links:
http://snipurl.com/hmn1h (RealNetworks statement)

http://news.cnet.com/8301-1023_3-10236388-93.html

http://www.digitalmusicnews.com/stories/050709rhapsody