RealNetworks (RNWK) - Get Report 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."

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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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