FRom William Trent, CFA of Stock Market Beat
RealNetworks, Inc. (RNWK) announced results for the first quarter ended March 31, 2007. Quarterly Highlights:
– Record revenue of $129.5 million
– Net income of $40.0 million or $0.22 per diluted share
– Adjusted net income of $10.4 million or $0.06 per diluted share
Analysts had been expecting the company to earn $0.17 on $125 million in revenue. The results were favorably impacted by the company’s acquisition of WiderThan. Its guidance for the second quarter is in line with analyst expectations of breakeven earnings, while the full-year guidance looks to be a pleasant surprise:
For the second quarter of 2007, Real expects revenue in the range of $130 million to $134 million, GAAP net income per diluted share of $(0.01) to $0.01 and adjusted net income per diluted share of $0.04 to $0.06. This
guidance assumes an effective tax rate of approximately 37%.For the full year 2007, Real expects revenue in the range of $547 million to $563 million. Real expects 2007 GAAP net income per diluted share of $0.24 to $0.27 and adjusted net income per diluted share of $0.23 to $0.25.
The results, which were accompanied by much stronger cash flow compared with last year’s quarter, cheered investors. The shares are up significantly in after-hours trading.
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