CEO hails restructuring efforts, but TPS revenues down 11%.
RealNetworks has announced its financial results for the second quarter of 2010, posting revenues of $88.9 million for its core business, but a net loss of $25.9 million.
Those figures don't include revenues from Real's Rhapsody music joint venture, which was spun off earlier this year. Real made $40.5 million from that in Q2 on top of the $88.9 million from its Technology Products and Services (TPS), Media Software and Services (MSS), and Games divisions.
TPS - the division that works with mobile operators - has been having a tough time, though. Its revenues were down 11% year-on-year to $41.1 million. Games revenues dropped 5% to $28.1 million in the same timeframe, while MSS revenues were down 2% to $19.6 million.
RealNetworks has spent much of 2010 so far restructuring - a process which accounted for $11.9 million of the net loss for Q2. The company says it has cut around 85 positions, including 25% of its executives.
"We made strong progress transforming RealNetworks during the second quarter," says president and CEO Bob Kimball (pictured), who was recently confirmed in the role after a period as acting CEO.
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"Our restructuring efforts are ahead of plan. In the first six months of the year, we cut more than $30 million in annualized operating expenses from our ongoing businesses. Now it is time to focus on growing the business by improving our sales and marketing of existing products and building a strong pipeline of innovative products for the long term."
Real has also shaken up its divisional structure, merging its TPS and MSS divisions into individual business units. The company will now split its financials between Core Products (which includes its operator business), Emerging Products, and Games.
Finally, Real has replaced its games boss John Barbour with Matt Hulett, its former chief revenue officer of games. He'll be based at the company's headquarters in Seattle, as Real tries to make a bigger splash in the social games market.
