To DownSouth and Daiju,
Here is an article on RNWK from Red Herring you may find interesting:
PROFITS LOOM LARGE
Last week Realnetworks (Nasdaq: RNWK) took the
wraps off of three new streaming media deals that will
allow it to offer images and real-time financial
information broadcasts over the Internet. The company
has agreed to carry Getty Images (Nasdaq: GETY)
content. Getty, located in Realnetworks's home town of
Seattle, Washington, provides photos and films
customers can integrate into corporate presentations,
publications, and advertisements. Separately,
Realnetworks reached a similar deal with Seattle
Filmworks (Nasdaq: FOTO), which allows users to post
and share photos over the Internet. The company has
also agreed to bundle and resell Tellsoft Technologies's
ITalk software as part of the Realnetworks Financial
Web Broadcaster package. Such information may
include real-time financial news, analysis, and market
commentary.
Realnetworks is a standout in the Internet field because
it actually has a clear line of sight to profitability. The
company reported net revenues of $28 million for the
second quarter of 1999, an increase of 86 percent from
net revenues of $15 million in the second quarter of
1998. Net loss for the quarter was $270,000, or $0.004
per share, compared to a net loss of $2.6 million, or
$0.04 per share, in the second quarter of 1998.
The turnaround in income hasn't gone unnoticed.
BancBoston Robertson Stephens managing director and
senior networking software analyst John F. Powers
reiterated his Buy recommendation, noting that the
"break-even" status of per-share earnings precedes a
turnaround in shareholder value.
Realnetworks closed Monday up 7.6 percent at $100.81,
displaying an upward trend that is gaining on its
52-week high of $131.88. Tuesday brought a 4.7
percent ($4.69) setback, however, with a $96.13 close.
I am doing other research myself on RNWK and will post other findings.
Joel
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