Real falls short

RealNetworks shares today dropped nine percent after the company issued a sales and profit forcast that fell short of Wall Street expectations. One of Apple's largest competitors, the company's stock gained 15 percent on Tuesday in anticipation of forth-quarter financial results which was bolstered by a positive brokerage comment, according to MarketWatch. RealNetworks turned a profit, partially due to a $434.4 million gain related to a legal settlement with Microsoft back in October. The company earned $295.6 million, or $1.61 per share, compared to a loss of $972,000, or a penny per share registered for the fourth quarter of 2004, according to the report. Revenue reached $83.6 million, up from $72.5 million the previous year, below average expectations of nearly $85 million. RealNetworks has doubled its subscriber base since 2004, and the firm is working with manufacturers to produce a viable alternative to Apple's iPod.

by MacNN Staff