RealNetworks Rises In Pre-Market On Q1 EPS News, Issues Q2 And FY08 Outlook, Plans To Spin-Off Games Business
Posted on Friday, May 09, 2008 8:28 AM
(RTTNews) - RealNetworks
(RNWK) climbed in pre-market trading, up about 8 percent. The advance came after the company reported its first-quarter earnings, set its second-quarter and 2008 fiscal year guidance and announced a spin-off of its games business.
The stock was up 52 cents around 8:25 am ET, rising to $7.00. If pre-market gains hold, the stock will open at its highest level since early November.
Digital entertainment services company RealNetworks reported net income for the first quarter of $2.4 million or $0.02 per share, compared to $40.0 million or $0.22 per share for the year-ago quarter.
Results for the year-ago first quarter included the final payment of $61 million related to Real's antitrust settlement and commercial agreements with Microsoft.
Revenue for the first quarter grew 14% to $147.6 million from $129.5 million in the prior year quarter.
Analysts polled by First Call / Thomson Financial expected the company to report a loss of $0.03 per share on revenue of $141.57 million for the first quarter.
RealNetworks also said its Board of Directors approved a share repurchase program of up to $50 million.
For the full year 2008, Real expects revenue in the range of $628 million to $648 million. The company expects full year 2008 GAAP results to range between a loss of $0.05 per share to breakeven per share. Analysts currently expect the company to report a loss of $0.06 per share on revenue of $623.08 million for the full year 2008.
For the second quarter, Real expects revenue in the range of $151 million to $155 million. The company expects second quarter GAAP results to range between a loss of $0.04 per share to breakeven per share. Analysts currently expect the company to report a loss of $0.02 per share on revenue of $150.27 million for the second quarter.
Separately, RealNetworks announced that it plans to spin off its games business and distribute shares in the newly created games company to its shareholders.
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