RealNetworks (RNWK) shares jumped 5% late Wednesday after the company swung to a latest-quarter profit and raised 2005 guidance.
The Seattle-based online media service posted a first-quarter profit of $814,000, or less than a penny a share, on sales of $76.6 million. Those numbers compare with a 6-cent loss on $60 million in revenue in the year-ago period. Wall Street had expected a 2-cent first-quarter loss on $75 million in sales.
For current quarter, RealNetworks expects a profit of as much as 3 cents a share on about $80 million in sales. The company also raised its revenue target for the year to $325 million. Analysts had been looking for a break-even second quarter and 2005 sales of $317 million, according to Reuters Research.
"In the first quarter, we achieved record revenue and subscriber growth, and returned to GAAP profitability," CEO Rob Glaser said in a press release. "Driven by the launch of the new Rhapsody and the growth of our games business, I believe we will continue to strengthen our leadership in the digital media marketplace."
The company has 1.85 million subscribers to its media services, up from over 1.3 million for the same quarter last year.
RealNetwork shares rose 33 cents to $6.70 in after-hours trading.
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