RealNetworks Announces 86% Growth in Second Quarter Revenues
RealJukebox Launch Marks RealNetworks Initiative in Digital Music Distribution
July 20, 1999 04:10 PM
SEATTLE, July 20 /PRNewswire/ -- RealNetworks(R), RNWK , the recognized leader in media delivery on the Internet, today announced record results for the quarter ended June 30, 1999.
RealNetworks reported net revenues of $28.0 million for the second quarter of 1999, an increase of 86% from net revenues of $15.1 million in the second quarter of 1998. Net loss for the quarter was $270,000, or ($0.00) per share, compared to a net loss of $2.6 million, or ($0.04) per share, in the second quarter of 1998.
For the six-month period ended June 30, 1999, net revenues were $51.6 million, an increase of 87% from net revenues of $27.6 million for the comparable period in 1998. Net loss for the six-month period ended June 30, 1999, was $1.0 million, or ($0.01) per share. Proforma net loss for the comparable prior year period, excluding a one-time charge for in-process research and development, was $4.8 million, or ($0.08) per share.
"This was a very significant quarter for RealNetworks," said Rob Glaser, Chairman and CEO, RealNetworks, Inc. "In addition to strong results from each of our divisions, as evidenced by our 16th consecutive quarter of revenue growth, we also launched a major new initiative in digital distribution. I am excited about our successful Beta release of RealJukebox, a product we believe is the biggest breakthrough in music listening since the Walkman. With more than five million unique users since its release just ten weeks ago, RealJukebox is one of the most rapidly adopted new software products ever."
During the second quarter, RealNetworks introduced RealJukebox(TM), the first complete digital music product that gives consumers everything they need to acquire, play and manage their personal music collections. RealJukebox is based on RealSystem(TM) MP, which is an open and extensible digital music platform enabling integration with a wide range of Internet music services and hardware devices, including support for virtually all of the emerging secure digital distribution formats.
In the emerging broadband market, RealNetworks followed earlier agreements with Enron Communications and @Home with significant second quarter agreements with Liberate Technologies and WebTV, and the RealBroadcast Network introduced the first distributed multi-tier broadcast architecture through deployments with 12 of the leading Internet backbone/ISP providers.
RealNetworks also announced today that it now has more than 70 million unique users of the RealPlayer(R), a 159% increase from the 27 million unique users at the end of the second quarter of 1998.
All segments of RealNetworks' business had strong growth during the second quarter. In particular, advertising revenues increased by 165% to $2.0 million from $0.8 million in the second quarter 1998. "Our increasing ability to connect consumers to content has contributed to this significant advertising growth," said Glaser. "Our enhanced RealGuide saw an 85% increase in average daily page views compared to our first quarter, and the RealNetworks family of websites now ranks 12th in unique reach, up from 15th, according to Media Metrix. These are strong indications of the distribution and promotional capabilities that we offer to our broadcast partners."
Also during the second quarter, RealNetworks completed a follow-on common stock offering of 4.6 million shares. 4.1 million of the shares offered were sold by RealNetworks, which raised net proceeds of over $225 million.
About RealNetworks
RealNetworks, Inc., based in Seattle, WA, is the recognized leader for media delivery on the Internet. It develops and markets software products and services designed to enable
|
