Citing the absence of payments related to its antitrust settlement and commercial agreements with Microsoft, RealNetworks (Nasdaq: RNWK) said its Q2 net income plunged 96.7 percent to $1.3 million, or $0.01 per diluted share, compared to $38.9 million or $0.22 per diluted share, last year. The digital player company received a set of payments from Microsoft spread out over last year, which boosted RealNetworks’ Q206 earnings significantly; the last payment it received was in Q107. Meanwhile, revenue grew 52 percent to $136.2 million in Q2 versus $89.4 million during the same period in 2006. Other Q2 highlights:
— Gross margin was 64 percent compared to 70 percent in Q206.
— Music revenue was $36.8 million, a 22 percent rise over last year.
— Games revenue came in at $24.9 million, up 17 percent.
— Media Software and Services revenue dropped 3 percent to $25.4 million.
— For Q3, RealNetworks expects revenue in the range of $141 million to $145 million.
— Technology Products and Solutions segment revenue was $49.1 million, a 310 percent increase over the second quarter of 2006, due to the acquisition of mobile entertainment company, WiderThan. Earnings release | Webcast
— Update: Rob Glaser, RealNetworks
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