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RealNetworks Beats Estimates

02/14/07 - 07:05 PM EST

Katie Dean

Updated from 4:40 p.m. EST

RealNetworks RNWK surpassed Wall Street's fourth-quarter forecast late Wednesday but offered a weak outlook for the current quarter and year ahead.

The Seattle-based media company's stock recently slipped by a penny to $10.66 in after-hours trading.

RealNetworks said fourth-quarter revenue totaled $125.6 million, rising from $83.6 million in the same quarter 2005.

Real posted net income of $39.3 million, or 22 cents a share, falling from $295.6 million, or $1.61 a share, in the same period a year ago. Both results include payments related to the company's antitrust settlement with Microsoft MSFT.

Thomson First Call analysts polled pegged Real for 21 cents a share on sales of $120.4 million.

The company posted an adjusted profit of $9.9 million, or 5 cents a share, vs. a loss of $6.1 million, or 4 cents a share, in the same quarter last year.

Real's online music segment posted $33.6 million in sales, up 21% over the same quarter last year, while its growing games division jumped 52% to $23.9 million. Media software and services posted $30.5 million in sales, 2% better over the same period last year.

Technology products totaled $37.6 million, up 270% but that included $26.7 million in revenue related to the newly-acquired WiderThan, which Real picked up last fall.

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