In the quarter, RealNetworks lost $700,000 (£427,000), or 2 cents a share, on sales of $23.5m (£14.3m). First Call consensus pegged the Seattle-base firm for a loss of 3 cents a share in the quarter. RealNetworks shares rocketed up 52 7/16, or 41 percent, to 181 1/16 ahead of the earnings report. "We continue to be successful in our businesses based on four strong pillars: great technology; a huge registered base of 60 million unique RealPlayer users; connecting consumers to great content; and an ever-expanding ecosystem of strong industry partners," said CEO Rob Glaser in a prepared release. "This was another successful quarter for RealNetworks."
The $23.5m in sales represents an 88 percent jump compared to the year-ago quarter when it lost $2.2m, or 7 cents a share, on sales of $12.5m. Company officials said the 2-for-1 split will benefit shareholders of record on April 27.
After Yahoo! Inc. agreed to buy Broadcast.com Inc. for $5.7bn, rumours began to swirl that RealNetworks would be the next takeover target. However, Glaser said the company plans to remain independent for the foreseeable future.
RealNetworks shares hit an all-time high of 263 ¾ earlier this month after trading at a 52-week low of 15 ¼ in September.
All eight analysts following the stock maintain either a "buy" or "strong buy" recommendation.