Earnings: RealNetworks Hit By Currency Exchange Rates, Legal Fees; Verizon Boosts Music Revenues

imageRealNetworks (NSDQ: RNWK) said today that its first-quarter financial results were heavily affected by currency exchange rates, resulting in a five percent decrease in revenues compared to the year-ago period, and a net loss, compared to a profit in the first quarter a year earlier. Excluding the effects of these foreign exchange rate changes, revenue grew 1 percent year-over-year. The company’s current litigation over its Real DVD product is also contributing to its net loss.

One bright spot was music revenues, which increased 16 percent to $44.1 million from the year ago period. In an interview, RealNetwork’s CEO Rob Glaser (pictured, right) said growth is occurring on the subscription side, and mostly as a result of the new relationship it has with Verizon (NYSE: VZ) Wireless. “The work we do with them is the single-biggest part of that. We are nine months into that and that