RealNetworks today posted a loss of $18.5 million for the second quarter, as revenue declined in each of its core businesses.

robglaser
Rob Glaser

Co-founder and chairman Rob Glaser, who returned as the Seattle company’s interim CEO more than a year ago, told analysts on a conference call this afternoon that he remains optimistic about the prospects for turning RealNetworks around.

Glaser pointed to recent moves in its Games division as examples of the company’s strategy of faster product releases and more decisive business moves. The company last week acquired social casino company Slingo Inc. for $15.6 million and announced a $100,000 sweepstakes to give gamers more incentive to play its own GameHouse Casino.

“In sum, I’m very confident that we’re on a path to revitalize Real,” he said, adding later, “While it will take time, and we have much hard work ahead of us, I believe we’re setting ourselves up for growth and sustainable profitability.”

Across the company’s three divisions, RealPlayer Group revenue was down 17% to $18.4 million; Mobile Entertainment revenue was down 29 percent to $18.6 million; and Games revenue was down 26 percent to $12.9 million.

The company’s $18.5 million loss for the quarter (52 cents a share) compared with profits of $81 million a year ago, but those earlier results were boosted by a net gain from a sale of patents to Intel of $117.9 million. Revenue in the recent quarter was $49.9 million, down 24 percent from the same quarter a year ago.

RealNetworks had $236.7 million in cash and short-term investments as of June 30. The company is moving to a new headquarters near Safeco Field and expects to save about $7 million annually in rent as a result.

RealNetworks’ earnings call lasted about 18 minutes, mostly consisting of prepared remarks by Glaser and CFO Tim Wan. One analyst asked a question, about RealNetworks’ strategy for promoting and marketing its games.

Comments

  • vattmatt

    No way dude that is liek totally insane man, I mean like really.

    AnonMega.tk

  • earl

    So… Maybe bundling crapware with a player no one is interested in is not such a great business plan after all?

  • Guest

    This schmuck is one of the worst spammers on the internet. They took what was the defacto standard audio software and – in their desperation to monetize it – turned it into a spyware-infested turd.

    • Moeskido

      It wasn’t a standard. It was just a proprietary file format with DRM that no consumer wanted to put up with. Nobody misses it.

  • Doctor Biobrain

    Is RealNetworks still around? And they have $18 million to burn in just a quarter??

    Damn something’s wrong with the universe.

  • http://facebook.com/icecowboy Jim K

    Still sleazy after all these years. LoL. And with Rob Glaser still (well back) around. S’kind of adorable really – in a perverse plucky+sucky kinda’ way….

    ….for one thing, I still have some of the 64k (and later 96k) mp3’s I ripped onto Real Player back in the 90’s in my tunes collection – my first experience with digital music, and while their biz methods (if you can call them that without insulting business in general) drove me away as soon as alternatives started to pop up, can’t bring myself to hate ‘em for the intro….

    …so pioneers in their own crapware way. But then I’d still watch a Ron Popeil infomercial if he’s still among us, and was a Billy Mays fan as well….

  • Buffering

    RealPlayer = Outdated software which fills your computer with adverts for itself, claims to
    play videos but actually turns them into slideshows due to poor use of
    buffering.

  • http://www.BarnesFamily.com/ davebarnes

    Amazing that they are still around. Would it not make more sense to just shut it down?

  • sigaba

    Buffering… 2.8 s …. Buffering…

  • http://loewald.com/ Tonio Loewald

    So the money losing games division is going to save their other money losing divisions. Good to see by games they mean gambling. Staying classy.

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