RealNetworks, the seller of Internet music and video games, had a fourth-quarter loss of $240.5 million (€188.5m) after recording expenses for acquisitions.
The loss was $1.78 a share, compared with profit of $2.69 million, or 2 cents, a year earlier, RealNetworks said today in a statement. Sales fell 2.7 per cent to $152.6 million, the first decline since 2003.
Analysts predicted sales of $154.3 million.
RealNetworks has fired workers and put off a plan to spin off its games business. The worsening economy hurt demand for Internet advertising, corporate-network software and online video games.
Sales will drop in the first quarter, the company said, without providing its usual specific forecast.
“We’re obviously not seeing exciting growth for any of these businesses,” chief executive Officer Rob Glaser said in an interview.
“But overall we’re seeing steadiness, which in this environment is nothing to scoff at.”
Excluding certain costs, profit was $11.3 million. The company reported preliminary revenue for the quarter and disclosed the acquisition expenses earlier this month.
Even before the recession, RealNetworks’ online music business trailed Apple’s iTunes, while its software for playing music and videos hasn’t kept pace with products from Apple, Adobe Systems and Microsoft.
RealNetworks also is suffering from the falling value of currencies in Europe and South Korea, where it does business.
About 13 per cent of the company’s revenue is in Korean won, which is down about 35 per cent against the dollar from a year ago, said chief financial officer Michael Eggers.