RealNetworks’ profit unexpected

RealNetworks Inc., owner of the Rhapsody online music service, reported an unexpected profit after its expansion into mobile phone products spurred sales.

Net income dropped 90% to $4.34 million, or 3 cents a share, from $42.2 million, or 24 cents, a year earlier, when an antitrust settlement with Microsoft Corp. boosted results. Analysts in a Bloomberg survey had expected a 1-cent loss. Sales rose 55% to $145.1 million, the Seattle-based company said.

RealNetworks, which makes video players and music services for personal computers, is extending its products into the mobile phone market. Chief Executive Rob Glaser acquired three companies in that area in the last year, including WiderThan Co., a provider of ring tones and music for phones.

RealNetworks shares fell 2 cents to $6.56.