Seattle-based streaming-turned-computer-vision company RealNetworks Inc. (Nasdaq: RNWK) gave one last glimpse at its financials as a public company before a planned merger later this year that will take it private.
In its third quarter financial results, released Tuesday, RealNetworks said it generated $11.7 million in revenue during the quarter, down from $11.9 million the previous quarter and $14.3 million during the third quarter of 2021. Founder and CEO Rob Glaser said shareholders will vote on the merger Dec. 14.
"In the third quarter we continued to manage our business rigorously while Real's transition moves forward," Glaser said in a release. "Our financial results showed stable revenue sequentially, while our bottom line was negatively impacted by costs associated with the potential go-private transaction. We will continue to manage our resources responsibly through the transition."
RealNetworks in July announced it had agreed to merge with Greater Heights LLC, an affiliate of Glaser's, in a deal expected to close in the fourth quarter. Glaser and his affiliates currently own about 39% of RealNetworks' outstanding shares, the company said at the time of the announcement, and outstanding shares will be converted into the right-to-receive-cash consideration of 73 cents per share as part of the deal.
A committee of independent directors advised RealNetworks' board, which approved the merger. In its third quarter financial results, RealNetworks said the deal is still expected to close in the fourth quarter. The company also touted its facial recognition technology SAFR Scan, which clients can use for security and authentication.
"During the quarter we closed our first large SAFR Scan customer as well as a pipeline of sales opportunities for this exciting new product," Glaser said in the release.
RealNetworks was founded in 1994. In addition to facial recognition technology, the company offers text message management and casual games. The company in 2003 acquired Rhapsody, which started to operate independently in 2010 and announced plans to acquire the once-famous file-sharing service Napster in 2011. Rhapsody in 2016 rebranded to adopt the iconic Napster name before RealNetworks sold Napster for roughly $70.6 million in 2020.
