Real Reports Net Profit4/21/2002 8:00 PM Eastern
After spending more than two years in the red, RealNetworks Inc. saw real profits in the first quarter of 2001.
The provider of streaming-media technology posted a net profit of a little more than $1 million at 1 cent per share, compared to the $24.4 million loss posted for the same quarter last year. But its revenues dropped slightly — from $50.4 million a year ago, to $47.3 million — while its adjusted cash earnings totaled almost $3.7 million.
"These results provide further evidence that we're moving in the right direction," Real chairman and CEO Rob Glaser said in a statement.
The Seattle-based company's string of quarterly losses, which started in fourth-quarter 1999, were partially blamed on charges from a series of acquisitions. Excluding those charges, the company has been operationally profitable.
The company's RealOne subscription-content service posted strong results for the quarter. Its revenues were up 35 percent from the fourth quarter, to total $13.6 million. RealOne's subscriber base has increased 20 percent since the end of 2001 and now totals 600,000 customers.
Advertising revenue continued to slide. It fell 46 percent from the fourth quarter to total a mere $1.6 million, and contributed just 3 percent of the company's total revenue.
The company is holding to its forecast that it will see "slight to moderate" growth in 2002, with stronger growth predicted for the second half.