RealNetworks 4Q loss narrows on year-ago charges, sees 2010 revenue falling as much as 12 pct

RealNetworks 4Q loss narrows, 2010 revenue to fall

SEATTLE — RealNetworks Inc. posted a smaller net loss in the fourth quarter on Thursday versus a year ago, when the company posted significant charges for writing down assets. Revenue fell as business remained soft in games and music.

The one-time Internet highflyer said the economy remains sluggish and it doesn’t expect business trends to improve in the first quarter. On Tuesday, the company said it will spin off its music streaming service Rhapsody, which it jointly owns with Viacom Inc.’s MTV Networks.

RealNetworks, which created the RealPlayer media player and provides digital music streaming services, lost $13.3 million, or 11 cents per share, in the quarter compared to a loss of $240.5 million, or $1.78 per share, in the same quarter in the prior year.

The 2008 quarter included a $240.7 million, or $1.78 per share, charge to write down assets whose value has fallen. In contrast, the 2009 quarter’s impairment charge was $7.4 million, or 5 cents per share.

Excluding one-time items, RealNetworks lost 7 cents per share. That’s a penny worse than what analysts were expecting, according to Thomson Reuters.

Revenue fell by 5 percent to $145.5 million from $152.6 million. Excluding the benefit from a weak dollar, revenue fell by 8 percent. Analysts were forecasting $143.4 million.

For the year, RealNetworks lost $212.3 million, or $1.60 per share, compared with a loss of $243.9 million, or $1.74 per share. Both quarters had impairment charges — $175.6 million and $192.7 million, respectively. Revenue fell 7 percent to $562.3 million.

For 2010, RealNetworks expects revenue to fall by up to 12 percent year-over-year, or as low as $494.8 million. Analysts had forecast $562.2 million.

Shares of RealNetworks were unchanged in after-hours trading. The stock was up 18 cents, or 4.1 percent, to $4.57 during Thursday’s regular session.