RealNetworks Announces Lower Revised Revenue and Earnings Outlook
Company Cites Slowing Technology Spending, Points Out Continuing Fundamental
Strengths of Businesses
RealNetworks to Hold Conference Call and Webcast at 2 p.m. PST (5 p.m. EST)
Today
SEATTLE, Dec. 20 /PRNewswire/ -- RealNetworks(R), Inc. (Nasdaq: RNWK), the
recognized leader in media delivery on the Internet, today announced that
revenue and earnings for its fourth quarter ending December 31, 2000, will be
below market expectations.
The Company expects to report pro forma diluted earnings per share of
approximately $0.02. Revenue for the fourth quarter is now expected to be in
a range of $58 million to $60 million, representing an increase of
33% to 38% over the same quarter last year. The Company does expect to report
its 11th consecutive quarter of positive cash flow from operations and its
sixth consecutive quarter of profitable pro forma results.
Actual results for the quarter and fiscal year ending December 31, 2000,
and further details on the Company's expectations for fiscal year 2001, will
be reported on or about January 30, 2001.
Rob Glaser, chairman and CEO, RealNetworks, Inc., said, "We are not immune
to the current market environment for Internet-related spending, and we've
made adjustments to our near-term growth expectations. At the same time, we
remain highly confident in our fundamentals, leadership position, and
long-term prospects." Glaser added, "With more than 170 million unique
registered users of the RealPlayer worldwide, and with over 85 percent of
streaming media pages using our formats, RealNetworks continues to capitalize
on the network effect connecting consumers with the Internet's leading digital
media programming."
RealNetworks will hold an audio webcast at 2 p.m. PST (5 p.m. EST) today
with Rob Glaser, chairman and CEO, and Paul Bialek, CFO, to discuss additional
details regarding the revised outlook and other forward-looking information.
The webcast can be accessed at
play.rbn.com. Later today
the archive of the webcast will be available at
play.rbn.com.
About RealNetworks
RealNetworks, Inc., based in Seattle, is the recognized leader in media
delivery on the Internet. It develops and markets software products and
services designed to enable users of personal computers and other consumer
electronic devices to send and receive audio, video and other multimedia
services using the Web. Consumers can access and experience audio/video
programming and download RealNetworks' consumer software on the Internet at
real.com. RealNetworks' systems and corporate information is
located on the Internet at realnetworks.com.
This announcement contains forward-looking and preliminary statements
regarding RealNetworks' anticipated fourth quarter results. Final, actual
results could differ materially, based principally on our ability to close
additional contracts containing recognizable fourth quarter revenue, any
unforeseen expenses, and any accounting adjustments made during the quarterly
close or annual audit. Actual results may differ materially from the results
predicted and neither preliminary nor reported results should be considered an
indication of future performance. More information about potential risk
factors that could affect the Company's business and financial results is
included in the Company's annual report on Form 10-K for the year ended
December 31, 1999, and its quarterly report on Form 10-Q for the period ended
September 30, 2000, and from time to time in other reports filed by the
Company with the Securities and Exchange Commission.
NOTE: RealNetworks and RealPlayer are trademarks or registered trademarks
of RealNetworks, Inc. All other trademarks or service marks are properties of
their respective owners.
SOURCE RealNetworks, Inc.
-0- 12/20/2000
/CONTACT: Press, Erika Shaffer, 206-892-6191, or eshaffer@real.com, or
Financial Inquiries, Paul Bialek, 206-674-2342, or pbialek@real.com, both of
RealNetworks, Inc./
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 119814/
/Web site: realnetworks.com
/Web site: real.com |
