RealNetworks Reports Record Results for 1999, Including Fourth Quarter Revenue Growth of 111%
Two-for-One Stock Split Declared
Launch of Real.com Network and Release of Broadband-Enhanced RealSystem G2 Reinforce RealNetworks' Role as the Leading Internet Media Delivery Company
January 25, 2000 04:10 PM
SEATTLE, Wash., Jan. 25 /PRNewswire/ -- RealNetworks(R), Inc.RNWK , the recognized leader in media delivery on the Internet, today announced record results for the quarter and fiscal year ended December 31, 1999.
Net revenues for the quarter ended December 31, 1999, were $43.5 million, an increase of 111 % from $20.6 million in the fourth quarter of 1998. The Company reported net income for the quarter of $6.1 million, or $0.07 per diluted share, compared to a net loss of $2.2 million, or ($0.03) per diluted share, in the fourth quarter of 1998.
For the year ended December 31, 1999, the Company reported net revenues of $131.2 million, an increase of 98% from net revenues of $66.4 million in 1998. Excluding a $1.4 million acquisition charge, net income for 1999 was $8.3 million, or $0.10 per diluted share. This compares to a pro forma net loss for 1998, excluding a charge of $8.7 million for in-process research and development, of $11.2 million, or ($0.17) per share for 1998.
The Company also announced that its board of directors approved a two-for- one split of its common stock. Shareholders will receive one additional share for every share held on the record date of January 28, 2000. The additional shares will be mailed or delivered on or about February 11, 2000, by the Company's transfer agent, ChaseMellon Shareholder Services.
Additionally, RealNetworks announced today the acquisition of Netzip, Inc., a leading provider of Internet download management software (see separate release).
"RealNetworks gained momentum across all our businesses this quarter, capping a phenomenal year that reinforced our commanding leadership in Internet media delivery," said Rob Glaser, chairman and CEO of RealNetworks. "This quarter was marked by the launch of the Real.com Network(TM) and a broadband-enhanced version of industry-leading RealSystem(TM) G2, and the continued rapid adoption and use of RealJukebox(TM). Collectively, these achievements demonstrate RealNetworks' success in providing 95 million unique registered users with a greatly enhanced media experience and enabling content providers to deliver new classes of media programming while generating revenue from their media assets."
RealJukebox continued its rapid growth during the fourth quarter, with the number of unique registered users of RealJukebox nearly doubling, to 22 million. RealJukebox's stature as the most popular digital music player was confirmed when both PC Magazine and PC Computing Magazine honored RealJukebox as 1999's best new product.
In early November, RealNetworks launched the Real.com Network. This revolutionary new network, consisting of Real.com, Real.com Take 5(TM) and RealPlayer(R) 7, provides millions of consumers with a new way to access and experience audio/video programming on the Internet. This first of its kind network was enabled through alliances with more than 100 leading broadcast and Internet media companies, who were looking for the best way to reach the broad Internet audience.
"We have taken huge steps this quarter with the launch of the Real.com Network, enabling consumers to easily find and enjoy the Internet programming they want," said RealNetworks' Chief Operating Officer Tom Frank. "We and our media partners are increasingly able to leverage the expanded network traffic and the rapidly growing usage of our 95 million unique registered RealPlayer users and 22 million unique registered RealJukebox users, creating significant new promotion and distribution capabilities."
Consumer response to the Real.com Network has already been substantial, generating a 61% increase in traffic to RealGuide(TM) in the fourth quarter, demonstrating the Company's success in becoming a leading media destination site. The new Real.com Network also drove an estimated 110 million visits to media companies providing programming through the Real.com Network since November 1999.
Further demonstrating the reach of the Real.com Network, the Company also reported that during the fourth quarter RealNetworks downloaded over 58 million unique software packages to consumers, up from 25 million in the year ago period.
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