RealNetworks Climbs as Results Match Forecasts

RealNetworks (Nasdaq: RNWK) advanced 41 U.S. cents to $9 in morning trading Wednesday after the Internet media content company reported quarterly results that, while below year-earlier levels, were in line with expectations.

Revenue for the first quarter ended March 31st slipped to $50.4 million from $53.5 million in the same period last year, the Seattle-based company said.

Pro forma income fell to $3.5 million, or 2 cents per share, from $8.8 million, or 5 cents. The company posted a net loss of $24.4 million, or 15 cents per share, wider than the $18.8 million, or 12 cents, recorded a year earlier.

Chairman and chief executive officer Rob Glaser said he is encouraged by recent steps the company has taken to expand its opportunities.

"RealNetworks continued to demonstrate the long-term strength of our business model by expanding our universal media delivery platform, increasing the amount of compelling content available on the Internet and helping our partners and customers make money," Glaser said.

GoldPass, an Internet subscription service RealNetwork launched in August, has more than 200,000 paying subscribers, the company said. RealPlayer, the company's downloading service, has more than 200 million registered users, up from 116 million at the end of the first quarter.

A set of agreements with the National Basketball Association and Major League Baseball makes RealNetworks the exclusive platform for a range of online services, including live audio Webcasts of basketball and baseball games and an on-demand video highlights service for Gold Pass subscribers.

In April, RealNetworks formed a joint venture with AOL Time Warner, Bertelsmann and EMI to create a music subscription service, MusicNet.

"We are built to last, and this quarter's activities underscore that," Glaser said.