SEATTLE: Internet media company RealNetworks Inc., which posted a sharp slide
in second-quarter profits, expects its third quarter to be weaker than its
second as it grapples with a tough market for its systems software that lets Web
sites transmit audio and video, chief executive Rob Glaser said on Tuesday.
However, the Seattle-based company, which makes the RealPlayer and
RealJukebox consumer software, would likely see growth in its GoldPass service,
which offers exclusive online content to paying subscribers, Glaser said.
"At this time our best estimate is, due to the macro capital spending
market being weak, which affects our systems business, and weakness in the
advertising market, Q3 will be down relative to Q2," Glaser told analysts
in a conference call.
"This appears to be in the range of how Q2 was down relative to Q1, but
could be down by a few additional percentage points. The brightest part is that
we expect our consumer business will see modest sequential growth in revenue due
to continued growth in out consumer subscription business," Glaser said.
On Tuesday, RealNetworks posted second-quarter profits and revenues that
missed Wall Street estimates. Pro forma net profits were $2.4 million, down from
$10.6 million a year earlier, while revenues fell nearly 25 per cent, to $47.9
million from $62.7 million.
(C) Reuters Limited 2001.