1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

RealNetworks Inc. Reports Operating Results (10-Q)

May 07, 2010 | About:

RealNetworks Inc. (NASDAQ:RNWK) filed Quarterly Report for the period ended 2010-03-31.

Realnetworks Inc. has a market cap of $546 million; its shares were traded at around $4.04 with and P/S ratio of 1. RNWK is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

In the quarter ended March 31, 2010, our total revenue declined 8.7%, or $12.2 million, to $128.6 million compared with $140.8 million in the quarter ended March 31, 2009. This decrease was due to declines in revenue in our TPS, Games and Music segments totaling $1.7 million, $2.6 million and $8.3 million, respectively. We also recorded net income available to common shareholders of $3.2 million for the quarter ended March 31, 2010 compared with a net loss of $12.1 million for the quarter ended March 31, 2009. Net income available to common shareholders for the current quarter was significantly impacted by a one-time gain of $10.9 million on the deconsolidation of our Rhapsody joint venture. Our operating expenses for the quarter declined 9%, or $9.2 million, compared with the year-earlier period. The decline in operating expenses was a result of our continued focus on simplifying our business and reducing headcount. While we achieved a reduction in operating expenses, we also incurred a total of $5.6 million in restructuring charges compared with restructuring charges of $0.8 million in the quarter ended March 31, 2009, and we continued to invest in research and development of new and existing products. Cash, cash equivalents, restricted cash and short-term investments declined to $348.9 million from $398.6 million at December 31, 2009, principally due to the $18.0 million in cash used in connection with the restructuring of Rhapsody, the $20.7 million in cash used to pay Rhapsody-related payables and the $5.5 million in cash used to settle the RealDVD lawsuit and to pay related legal expenses, as well as ordinary course fluctuation in working capital. See Results of Operations-Revenue by Segment below for further explanations of changes in our segment revenue for the quarter ended March 31, 2010.

Total TPS revenue declined $1.7 million, or 4%, in the quarter ended March 31, 2010, compared with the year-earlier period. This decline was primarily due to a one-time benefit recorded in the first quarter of 2009 from resolution of a dispute with a customer of approximately $2.9 million. Also contributing to the decline was a reduction in sales of our Helix-system services of approximately $0.9 million. These declines were partially offset by an increase in service revenue from our SaaS offerings of approximately $2.2 million. No other single factor contributed materially to the change in total TPS revenue during 2010.

Read the The complete Report

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now pre-order his book Invest Like a Guru on Amazon.

Rating: 2.0/5 (1 vote)


Please leave your comment:

GuruFocus has detected 2 Warning Signs with RealNetworks Inc $RNWK.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by 10qk

User Generated Screeners

Roger SteraWalter Schloss Screen2
Roger SteraPeter Lynch Screen
wwygeraGrowth Stocks
pbarker46Financial strength
song.chenghuaNet Net 2
song.chenghuaNet Net
Roger SteraGrowth stock
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)