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RealNetworks Posts 3Q Loss

By Wireless Week staff | October 30, 2008

RealNetworks posted a net loss of $4.5 million in Q3 and expects another loss in Q4.

RealNetworks CEO Rob Glaser had this to say: “In spite of a difficult and turbulent macro-economic environment, RealNetworks delivered results in line with our guidance. In particular, we are pleased with the initial results of our Music Without Limits initiative.”

For Q3 2008, revenue grew 5% to $152 million compared with $145.1 million for the Q3 2007.  

For the fourth quarter, Real expects revenue in the range of $150 million to $157 million. Compared with previous estimates, Real expects a reduction of about $8 million in fourth-quarter 2008 revenue as a result of the strengthening U.S. dollar. About 20%- 25% of Real’s revenue is denominated in currencies other than the U.S. dollar, most notably the euro and Korean won, the company said.

Real also expects a continued deterioration in the online ad sales market, as well as lower consumer and corporate IT spending, all of which contribute to lowered expectations for fourth-quarter revenue. 

The company said its Q4 and full year 2008 results are more difficult than usual to predict in light of the high level of uncertainties regarding consumer spending, global economic trends, foreign exchange rate fluctuations, credit markets and corporate valuations.


Filed Under: Carriers

 

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