RealNetworks today posted profits of $81 million for the second quarter, thanks to its sale of a large patent portfolio to Intel Corp., but the digital media pioneer signaled deep cuts ahead as it tries, once again, to rebuild its business.
The company plans to cut some $45 million in annual operating expenses, said RealNetworks chairman and founder Rob Glaser, who has returned as interim CEO following the departure of the latest in a series of chief executives.
That number represents a massive chunk of the business and signals a likelihood of further layoffs. The company posted $228 million in operating expenses last year, by comparison.
Speaking to analysts on a conference call, Glaser acknowledged that the company has “a lot of work ahead of us” but said he feels more confident in RealNetworks’ turnaround prospects than he did when returning as interim CEO five weeks ago.
He said the company will be more secretive about its plans than in the past, trying to follow the example of companies such as Apple and Amazon.