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Thursday, August 9, 2012 - Page updated at 05:00 p.m.
RealNetworks' 2Q results reflect restructuring
Seattle Times technology staff
RealNetworks' second-quarter financial results, reported Wednesday, reflected continuing efforts to revamp and restructure the company.
For the quarter, the Seattle digital media company reported sales of $65.5 million, down 21.8 percent from $83.8 million a year ago. At the same time, the company swung to a profit of $81 million, or $2.32 a share, from a loss of $6.8 million, or 20 cents a share, a year ago. The results reflect the sale of patents to Intel for $117.9 million, as well as $3 million in sales of other assets.
"It's clear that there's a lot of work to do to get RealNetworks back on track," interim CEO Rob Glaser said in a statement. "We are moving quickly to put a plan in place to do so."
Glaser, founder of RealNetworks, returned to the top post after former CEO Thomas Nielsen resigned in July, less than a year after taking the job.
The company said revenue declined in various segments of its business, including a 22 percent decrease in emerging projects, 15 percent in core products and 31 percent in games.
The company forecast sales of $59 million to $62 million in the third quarter. It also said that because it expects "significant restructuring activities" in the second half of this year, it would not be providing full-year guidance.
RealNetworks released its results after the market closed. The company's shares were unchanged in after-hours trading. In the regular trading session Wednesday, they closed up 5 cents at $8.04.
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