RealNetworks reports quarterly loss of $12.1 million

Seattle's Real Networks lost $12.1 million in the first quarter, compared with a $2.4 million profit a year ago.

In quarterly financial results results reported today, the digital entertainment company siad it lost lost 10 cents a share, compared with a profit of 2 cents a share in the same quarter last year.

The company had $140.8 million in sales, a decrease of 5 percent from the same period a year ago, when the company recorded sales of $147.6 million. The sales decline resulted from fluctuations in foreign currency exchange rates, the company said. Without that impact, revenue would have grown one percent year over year.

Sales in the quarter grew in RealNetworks' music and games businesses, but declined in its technology and media software divisions.

The company declined to offer financial guidance for the rest of the year, blaming uncertainty in consumer spending, the global economy and fluctuation in foreign currency rates.

In the next quarter, it expects sales to decline from the same period a year ago and to remain flat from this quarter.

In after-hours trading, Real's stock price rose 3 cents to $2.67, after closing at $2.64 a share.

John Chapple, former chief executive of Nextel Partners, will be joining Real's board of directors, filling a vacancy created when Jeremy Jaech resigned.

Sharon Pian Chan: 206-464-2958 or schan@seattletimes.com