RealNetworks expects rebound in 2011

Connect with us on our Facebook page for all the latest research news headlines and commentary, plus information and access to special TechFlash events.

After restructuring its business and shedding a third of its workforce, RealNetworks executives say they expect one more quarter of declining revenues earlier reaping the results of new products focused on cloud storage and social games.

The Seattle company recently posted a $12

The Seattle company recently posted a $12.3 million loss for the first quarter of 2011. However interim CEO Mike Lunsford says that afterwards cutting operating expenses by $70 million and refilling the pipeline with new products and services, RealNetworks expects revenue to pick up by the third quarter of 2011.

"We anticipate one more quarter of slight sequential and year-over year revenue declines earlier we start to see the benefits of the new produces we've been developing," said Lunsford, in a recent call with industry analysts.

The Q1 financial report illustrated that RealNetworks is a much small company afterwards going through a restructuring that included cutting its workforce and spinning off a majority interest in subscription music service Rhapsody.

The first quarter of 2011

RealNetworks' revenue for the first quarter of 2011 was $87.3 million, down from the $128.6 million the company posted at the end of the same quarter a year ago. When adjusted for the spin-off of Rhapsody, revenue was down 6 percent from a year ago.

Lunsford said RealNetworks will in the near future launch its "Unifi" personal media cloud service with Vodafone Germany, with an expectation to sign up more mobile operators. Unifi will provide a unified library of user's digital content -- including photos, music, and videos -- and make that content accessible across a variety of platforms and programs, including Macs, Windows PCs, Android devices, iPhone, Facebook and Flickr.

Lunsford said the company plans to launch a new version of RealPlayer this year. And the company plans to expand video-on-demand services with wireless carriers, to take advantage of newly launched 4G networks and larger screens. Lunsford said RealNetworks plans to launch the extended VOD service with one major carrier in second half of 2011.

New variation of ringback tones

RealNetworks as well is working on a new variation of ringback tones, called "Hey Yo!" internally. The app will allow subscribers to record a message or select from a prerecorded message that would be played if someone called. It might, for instance, tell a caller that the subscriber is at the movies and can't pick up without the caller having to wait to leave a message.

He said RealNetworks was recruiting outside the company for a new CEO, and that he would work with RealNetworks founder Rob Glaser and others in the search, even though he gave no time frame on when a new CEO would be hired.

Alarming international trends show declining numbers of women majoring in computer science and a stubbornly persistent gender gap in information research employment. Inside the company and in partnership with others, Microsoft is involved in a wide range of programs aimed at trying to reverse these trends and attract, recruit, retain, and develop women from around the world in the field of computer research.

Seattle University now offers two graduate programs in computing. The evening Master of Software Engineering program builds upon the professional experience of its students and offers courses in a variety of technical and management topics, with an emphasis on teamwork and a disciplined approach to problem solving. The Master of Science in Computer Science program accommodates both full-time and part-time students and enhances students' previous academic work in computer science, in order to develop technical depth and lifelong learning skills necessary for successful career advancement.

The 50 Most Powerful Women in American Business

Named four different times as one of the "50 Most Powerful Women in American Business," Dawn Lepore is among the nation's most highly accomplished e-commerce leaders.

Lepore is uniquely qualified to speak about the future of online sales and marketing, not just for retailers however for any business. And at TechFlash's upcoming Women in Tech event, she will offer her personal take on leadership and winning in business.

© 2011 American City Business Journals, Inc. and its licensors. All rights reserved. The material on this site may notbe reproduced, distributed, transmitted, cached or if not used, except with the prior written permission of bizjournals.