Digest: MSLO sinks; RealNetworks wins
EmptyMSLO sinks to 52-week low
Shares of Martha Stewart Living Omnimedia Inc. slid to a 52-week low Wednesday of $12.43, before closing down 1.2% at $13.35, after the company reported a wider second-quarter loss because of one-time charges and declining merchandise sales at Kmart. The company lost $6.7 million, compared with $1.2 million a year ago on revenue that rose 7.7% to $73.4 million. Analysts expressed concerns that audiences have dropped for Martha Stewart’s daily syndicated show.
Napster narrows Q1 loss
Napster Inc. posted a narrower fiscal first-quarter loss Wednesday that was better than Wall Street expected, sending shares up as much as 12% after hours. Reflecting lower subscriber acquisition costs, Napster’s loss of $4.2 million narrowed from a loss of $9.8 million a year ago. Revenue rose 15% to $32.3 million.
Good day for RealNets
RealNetworks Inc. said Wednesday that it has won a patent infringement lawsuit filed against it by Friskit Inc. which sought $70 million in damages. The company said a judge in the U.S. District Court for the Northern District of California agreed with RealNetworks’ assertion that it did not violate four Friskit patents related to searching for and listening to streaming media. Separately on Wednesday, RealNetworks was upgraded from “sell” to “hold” by Wall Street firm Soleil. Shares of the digital media company rose 7.2% on Wednesday to $7.63, leading the gainers on The Hollywood Reporter’s Showbiz 50 stock index.
EA slowdown hurts Q1 financials
Electronic Arts Inc.’s fiscal first-quarter losses widened by 63% amid a seasonal slowdown, with the world’s largest video game maker launching only one new title in three months. But the company — undergoing a major reorganization — still managed to exceed Wall Street’s tepid expectations. EA posted a net loss of $132 million compared with a loss of $81 million in the same quarter last year. Revenue fell 4% to $395.