RealNetworks Tries to Balance Costs
Jul 27, 2001, 12:00 AM
RealNetworks, Inc. has announced several measures to enable the company to keep its costs in balance during the current economic slowdown, and to better leverage its market leadership position. The plan will result in a reduction of staffing by approximately 15%, and will include significant reductions in discretionary spending as well. According to the company, the announcement is consistent with the information presented in RealNetworks' second quarter earnings statement issued on July 17. In that statement, the company reported its eighth consecutive quarter of pro forma operating profitability and its 13th consecutive quarter of pro forma positive operating cash flow, as well as a continued strong cash position. The announcement is accompanied by no change in financial guidance except for an anticipated restructuring charge of approximately $4-5 million during the third quarter to reflect costs associated with implementing the plan.