REAL REVENUE UP, BUT SO ARE LOSSES
The company's Q1 2004 revenue was $60.4 million, up 29% from Q1 2003 and up 12% from Q4 2003. First quarter results include approximately $2 million of revenue associated with the acquisition of GameHouse, Inc. in January. The net loss for Q1 2004 was $10.4 million or $0.06 per share compared to a net loss of $5.3 million or $0.03 per share in Q4 2003 and net loss of $2.8 million or $0.02 per share in Q1 2003.
Included in the Q1 2004 net loss was a $4.9 million expense for costs related to removal of the PGA Tour content from subscription services and $2.3 million expense related to the Company's antitrust litigation. Excluding these litigation and content expenses, the net loss was $3.2 million or $0.02 per share, compared to a net loss of $3.8 million or $0.02 per share, excluding antitrust litigation expense of $1.6 million, in Q4 2003.
Said Real Networks CEO Rob Glaser: "Our business accelerated in the first quarter. Driving this acceleration was our growth in consumer services, particularly music and games. We now have more than 450,000 subscribers to our digital music services, which we believe makes us #1 in music subscriptions. Combining our growth on the consumer side with the positive results we saw in our business segment this quarter, we believe we are well on our way to achieving quarterly profitability by the end of 2004, excluding antitrust litigation expenses. Knock on wood."
