RealNetworks Cuts Sales Forecast

RealNetworks Inc. reduced its forecast for fourth-quarter sales and earnings, citing a slowdown in Web-related spending. The maker of Internet media software said profit will be 2 cents a share on revenue of $58 million to $60 million. Analysts on average were expecting earnings of 4 cents, according to First Call/Thomson Financial. Sales had been forecast at $73.6 million, the average analyst estimate from IBES International Inc. RealNetworks also cut its targets for next year’s results. Earnings for 2001 are now likely to be 12 cents to 16 cents a share, rather than the 23 cents analysts anticipated, the company said, with revenue at about $300 million, versus the $356.1 million expected. Shares in Seattle-based RealNetworks fell $1.06 to close at $9.94 on Nasdaq, before the warning. The stock dropped to $5.56 in trading after the report.