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RealNetworks, Inc. (RNWK) Reports Higher Net Income In First Quarter Of 2010

RealNetworks, Inc. reported net income of $3.2 million, or $0.05 per share, in the first quarter of 2010. The company lost $12.1 million, or ($0.12) per share, in the same quarter of 2009.

Despite the rise in net income on a year over year basis, RealNetworks, Inc. saw a drop in revenue over the same time frame. The company reported revenue of $128.6 million in the first quarter of 2010, compared with $140.8 million in the first quarter of 2009.

The management of RealNetworks, Inc. said that movements in foreign currency exchange rates benefited revenues in the first quarter of 2010 by $3.4 million relative to last year.

RealNetworks, Inc. reported a drop in revenue in 3 of its 4 business segments in the first quarter of 2010, compared to last year. Only Media Software and Services reported an increase.

Media Software and Services – $20.7 million – 2% increase.
Technology Products and Solutions – $41.9 million – 4% decrease.
Games – $30.2 million – 8% decrease.
Music – $35.7 million – 19% decrease.

RealNetworks, Inc. has a strong balance sheet as of 3/31/2010, with $335.2 million in unrestricted cash, and $64.4 million in restricted cash. Also counted in the restricted cash is an equity investment in Rhapsody, which is 45.7% owned by RealNetworks, Inc.

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