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