Its antitrust lawsuit against Microsoft Corp made a $1.6m dent in RealNetworks Inc’s fourth-quarter bottom line, and will likely prevent it from returning to profitability under generally accepted accounted principles this year, the firm said yesterday.
The audiovisual software and services provider reported a GAAP net loss for the three months to December 31 of $5.3m, compared to a loss of $2.4m a year earlier, on revenue that was up 17% at $54.1m. Excluding the litigation, the net loss was $3.8m.
The company expects to add a $3m loss on the lawsuit this quarter, and has built it into its 2004 business outlook, saying: Excluding the antitrust litigation expenses, RealNetworks expects to return to profitability by the end of 2004.
It’s probably a price worth paying, however. Microsoft has been in settlement mode, paying off private and public antitrust suits, for several quarters, so RealNetworks suit may not last long, and may pay well.
This article is based on material originally published by ComputerWire