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RealNetworks 4Q in line
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January 29, 2002: 5:24 p.m. ET
Streaming media company meets estimates, is upbeat on 2002.
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NEW YORK (CNN/Money) - Streaming Internet media technology specialist RealNetworks on Tuesday logged a fourth-quarter pro forma profit that matched Wall Street's expectations and forecast improvements in its top line in the coming quarters.
After the close of trading, the company, whose Real Player software is among the most popular for video and audio content on the Internet, reported a pro forma profit of $1.6 million, or a penny per share, for the quarter ended Dec. 31.
That excludes acquisition-related and other one-time charges and compares with a pro forma profit of 2 cents per share in the same quarter a year earlier. RealNetworks' most recent results matched the consensus esimate of analysts polled by First Call.
Accounting for one-time charges, the company's fourth-quarter net loss was $11.8 million, or 7 cents per share, an improvement over its net loss of $33.3 million, or 21 cents per share, during the same quarter a year earlier.
At $45.4 million, RealNetworks' fourth-quarter revenue was down from $58.2 million a year earlier but in line with the company's guidance and analysts' general expectations.
And executives of RealNetworks (RNWK: Research, Estimates) said they expect to show improvements in revenue in each quarter this year, with the growth accelerating in the second half.
"While 2001 was a challenging year, we believe we are now entering a period of renewed growth," Rob Glaser, the company's chairman and CEO, said in a statement.
While still cautious about the near-term, RealNetworks said it expects the fourth quarter 2001 to represent the start of a modest upward trend in quarterly sequential revenue growth.
The company is aiming for moderate revenue growth in the first half of the year, with increased growth trending in the later half of the year. Executives said they will continue to invest in building their consumer subscription business in 2002.
They said quarterly pro forma earnings in the first half of 2002 should match those it just reported for the fourth quarter, and improve in the third and fourth quarters of 2002.
RealNetworks, whose streaming media technology competes primarily with Microsoft's "Windows Media" technology, historically has given away its RealPlayer software and made money by licensing the delivery system to Web site operators.
The company recently has stepped up its efforts in other areas, pursuing alliances with a range of partners, and pushing its various premium subscription offerings.
In December, backed by a range of content providers including Major League Baseball and CNN, RealNetworks unveiled its RealOne Player and RealOne subscription service.
Also launched last December was RealOne Music, a premium music service that provides subscribers access to a catalog of more than 75,000 music tracks from major and independent record labels.
The company said it will continue to invest in building its consumer subscription business in 2002, and believes that growth there will be largely responsible for operating earnings growth this year. 
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