RealNetworks Revises Earnings Estimates: RealNetworks

RealNetworks Revises Earnings Estimates: RealNetworks (Nasdaq: RNWK) has revised its second quarter earnings estimates, expected now to be between $42.5 million and $45.0 million. This represents a sequential decline from revenue of $47.2 million reported for the first quarter. The lower revenue expectation reflects weakness in the company’s systems software business this quarter.

On the other hand, the RealOne multi-media subscription service continues to grow, with more than 700,000 paying subscribers, compared to 600,000 announced in April. Bear Strearns analyst estimates that by lining up 100,000 new subscribers in a quarter, the company is looking at a roughly $70 million business this year. He bases this figure on an average expenditure of $8 a month per subscriber.

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