Earnings: RNWK Q1 Rev Up 14 Percent But Earnings Lower Than Expected; Music Up 12 Percent,

This story was written by Staci D. Kramer.
Work in progress: RealNetworks (NSDQ: RNWK) is playing two this afternoonannouncing Q1 earnings and the spinoff of its casual games business. Revenue rose 14 percent to $147.6 million, compared with $129.5 million in the same quarter last year. Earnings dropped to $2.4 million, or $0.2 per share, down considerably from Q107's $40 million, or $0.22 per share. That was the last quarter of Microsoft's (NSDQ: MSFT) direct contribution to Real's bottom line through its antitrust settlement. (It's also a vivid reminder of the law of large gainsnext year's comps can be painful.) Some revenue details:

-- Gaming, which is being spun off, rose 33 percent, to $31.8 million
-- Music was up 12 percent, to $38.1 million
-- Technology Products and Solutions, up 15 percent to $51.3 million (in part from 2007 acquisitions SonyNetServices and Exomi)
-- Media Software and Services took a hit, down 2 percent to $26.4 million

More to come from the earnings call.

Earnings release | Webcast (5 p.m. ET)

By Staci D. Kramer