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Following last week's Microsoft scale backs in financial expectations, officials at RealNetworks announced that its revenue and earnings for its fourth quarter ending December 31, 2000, will be below previous market expectations.
The Company expects to report pro forma diluted earnings per share of approximately $0.02. Revenue for the fourth quarter is now expected to be in a range of $58 million to $60 million, representing an increase of 33% to 38% over the same quarter last year.
According to Rob Glaser, chairman and CEO, RealNetworks, Inc. the adjustments are largely a result of technology spending.
"We are not immune to the factors that are impacting the market assembly," says Glaser. "Indeed I want to state that the management is very committed to meeting the near-term financial targets and to that end, we're managing our resources very prudently."
Glaser emphasized that Real's business model was focused on the long term, where he believes his Company has great strength.
"Our diverse revenue streams are part of very conscious decision to build a strong foundation that thrives regardless of short-term trends and dynamics," says Glaser.
The Company does expect to report its 11th consecutive quarter of positive cash flow from operations and its sixth consecutive quarter of profitable pro forma results.