RealNetworks (NASDAQ: RNWK) is profitable again! The online media company that provides music and other entertainment cut its way into the black, getting rid of the costs that were getting in the way. It wasn't much of a profit, only $1.5 million for the third quarter, not even a full cent per share, but it's a hell of a lot better than the $4.5 million loss it sustained in the third quarter of 2008.
Revenue fell 8% last quarter to $140.3 million, just shy of the analyst average of $140.9 million. This trend is likely to continue through the fourth quarter. Music, technology product and game revenues were down. The profit was instead eked out of the supply chain and headcount.
Since you can't cut your way to growth, RealNetworks is exploring new ways to bring in some money. In September, it launched in iPod/iPhone application that provides access to music service Rhapsody, and it's working with Google (NASDAQ: GOOG) on a music search project.
CEO Rob Glaser tells Reuters, "We're very excited about the strategic impact of the new initiatives and the consumer uptake, but we think the monetization of these new initiatives will take a while to ramp up."
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