Highlights * Achieved GAAP profitability * Reported record revenue, up 27% from the first quarter of 2004 * Increased total subscriber base to more than 1.85 million * Expanded music subscribers to more than 1 million in April

For the first quarter of 2005, Real achieved record quarterly revenue of $76.6 million, up 27 percent from $60.4 million in the first quarter of 2004. The company reported net income of $0.8 million, or just under one-half cent per share, compared to a net loss of ($10.4) million, or ($0.06) per share, in the first quarter of 2004. Excluding antitrust litigation expenses of approximately $3.7 million, or $0.02 per share, during the first quarter of 2005, net income for the first quarter was $4.6 million, or $0.02 per share. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $2.6 million compared to a loss of ($7.5) million in last year's first quarter. Absent antitrust litigation expenses, EBITDA was $6.4 million for the first quarter of 2005, up from a loss of ($0.3) million, which also excluded the loss on a content agreement, in the first quarter of 2004.  [ more... ]

CNET News.com reports that, "In the midst of a broader music release, RealNetworks has quietly renewed its iPod technology battle with Apple Computer.

Last year, RealNetworks released a technology called Harmony that for the first time let copy-protected songs from a music store other than Apple's iTunes play directly on the iPod. RealNetworks had independently mimicked the antipiracy tools used by Apple and hadn't gotten Apple's permission first.

Apple called the company's actions "hacker tactics" and a few months later changed its software to break the compatibility, at least on iPod Photo devices. On Tuesday, a RealNetworks executive said his company had re-established compatibility with all iPods.

"Harmony now supports all shipping iPods, including iPod Photo," said RealNetworks Chief Strategy Officer Richard Wolpert.

The technology tussle, which focuses on a relatively small portion of RealNetworks' music business, nevertheless aims at the heart of one of the most controversial issues in online music."

"Digital media delivery outfit RealNetworks Inc. on Wednesday released patches for a high-risk security flaw in several versions of its widely deployed RealPlayer software.

The Seattle, Wash.-based company said the flaw could allow an attacker to run arbitrary or malicious code on unpatched machines. "RealNetworks has received no reports of machines compromised as a result of the now-remedied vulnerabilities," the company said in an online advisory."  [ more... ]

In an article for CNET News.com, Michael Kanellos writes, “If Rob Glaser, CEO of RealNetworks, had to pick one person whose business practices he disliked, it'd be Apple Computer CEO Steve Jobs.

At nearly every opportunity, Glaser will lambast Jobs, who, to date, has refused to make the successful iPod amenable to RealNetworks' music services. It's like watching the corporate version of the sperm whale and the giant squid.

Glaser last year likened the iPod to a vestige of Soviet communism. At the iHollywood Forum Digital Living Room conference taking place in San Mateo, Calif., today, he called the Mac maker deceptive for not explicitly telling customers that iTunes songs can't be transferred easily to other devices."

Dawn Kawamoto a Staff Writer for CNET News.com writes that "RealNetworks has released patches for its audio-video players in an effort to prevent attacks via buffer overflows. RealNetwork's patches, released Tuesday, address vulnerabilities in the software that could allow an attacker to run arbitrary or malicious code on a person's computer when a malicious WAV or SMIL file is processed."

According to Secunia, a vulnerability in RealPlayer 10.x has been discovered that allows a malicious user to bypass certian security restrictions to open.rm files locally using RealPlayers built-in browser. 

Techtree.com reports: Finland-based mobile leader Nokia and RealNetworks, creator of digital media services and software, announced that Nokia will ship RealAudio, RealVideo and the Helix DNA powered RealPlayer on a variety of Nokia mobile devices. According to Nokia, this has resulted in the delivery of over 20 unique handset models based on Series 60 and Symbian operating system with RealPlayer capability. Both companies said they are aiming to achieve their "mutual goal of enabling robust media functionality on mass-market mobile devices.

In a related article by NEWSBUG.net: While Microsoft's Windows software will not be in phones, Nokia said that they will support Microsoft Windows Media Audio, Windows Media Digital Rights Management 10 and Media Transfer Protocol, and support for Open Mobile Alliance digital rights management and the MPEG Advanced Audio Coding family of codecs in Windows Media Player via a plug-in.