RealNetworks Returns to Profit, Talks Google Deal
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U.S. digital media company RealNetworks (NASDAQ: RNWK) swung back into the black in the third quarter as cost-cutting offset sliding revenue from music and games.
RealNetworks, which delivers music and other entertainment content to computers and mobile devices, saw a meager net profit of $1.5 million -- a gain of less than 1 cent per share -- compared with a net loss of $4.5 million, or $0.03 per share, a year earlier.
The Seattle-based company said third-quarter revenue fell 8 percent to $140.3 million compared with a year ago. Analysts, on average, had expected $140.9 million.
For the fourth quarter, RealNetworks expects overall revenue to decline year-on-year, as sales of media software and service products remains flat.
RealNetworks launched an application in September allowing Apple (NASDAQ: AAPL)'s iPhone and iPod Touch users to access the RealNetwork music service Rhapsody and the company is now working with Google (NASDAQ: GOOG) on a Web music search project.
"We're very excited about the strategic impact of the new initiatives and the consumer uptake, but we think the monetization of these new initiatives will take a while to ramp up," Glaser said.
RealNetworks' shares held steady at $3.87 in extended trading, matching their regular-session close. They had risen as much as 3.4 percent to $4 after hours.