RealNetworks' profit rises on Microsoft payment

LOS ANGELES - RealNetworks Inc. on Thursday reported a significantly higher profit on a $39.8 million legal settlement payment from Microsoft Corp. and shares fell 1

per cent after it issued forecasts roughly in line with Wall Street estimates.






First-quarter net income rose to $24.9 million, or 14 cents per share, from $814,000, or nil per share, in the year-earlier quarter.





Adjusted earnings, which exclude the impact of the Microsoft settlement and stock-based compensation expenses, were 2 cents per share in the most recent quarter, matching the average of forecasts compiled by Reuters Estimates.





Revenue grew 13 per cent to $86.6 million from $76.6 million, reflecting gains in its music and game segments and the company's January acquisition of Zylom Media Group BV.





For the current second quarter, RealNetworks forecast revenue of $87 million to $90 million and adjusted earnings of 1 cent to 2 cents per share.





It also reaffirmed its full-year outlook calling for revenue of $365 million to $380 million and adjusted earnings of 8 cents to 12 cents per share.





Analysts polled by Reuters Estimates had called for second-quarter revenue of $91.7 million and earnings of 2 cents per share. For the year, their average revenue estimate was $372.8 million and their earning estimate was 11 cents.





Shares in RealNetworks slipped to $9.99 in extended trade from their Nasdaq close of $10.10.