RealNetworks posts surprise 3rd qtr. profit

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By Associated Press

Summary

RealNetworks Inc. posted a surprise third-quarter profit Thursday after a year of losses, as cost cutting helped make up for declining revenue.

Story Published: Oct 30, 2009 at 8:27 AM PST

SEATTLE (AP) - RealNetworks Inc. posted a surprise third-quarter profit Thursday after a year of losses, as cost cutting helped make up for declining revenue.

The digital entertainment company earned $1.5 million, and broke even on a per-share basis. That compares with a loss of $4.5 million, or 3 cents per share a year ago.

Revenue fell 8 percent to $140.3 million.

Analysts expected the company to show a loss of 6 cents per share on sales of $140.9 million, according to a Thomson Reuters poll.

RealNetworks did not provide specific projections for the fourth quarter. The company said it expects revenue to climb from third-quarter levels but fall year-over-year as media software and services and technology products revenue remains flat and music and game revenue declines.

Analysts surveyed by Thomson Reuters have forecast quarterly revenue of $143.5 million, on average.

Shares rose 9 cents to close earlier at $3.87.