SEATTLE, April 29, 2020 /PRNewswire/ -- RealNetworks,
Inc. (Nasdaq: RNWK), a leader in digital media software and
services, today announced the following steps to address the
unprecedented COVID-19 pandemic and its impact on the Company,
especially Real's Computer Vision platform and business, known as
SAFR.
- Real is pivoting SAFR to focus on the intersection of public
health and public safety. We believe that the SAFR platform can
become a significant product to help support public safety in this
new era. Our engineers have been hard at work during the pandemic
and we are seeing promising early results. We expect to be rolling
out new SAFR-based products beginning in mid-2020 that will address
newly identified needs of the market for public safety as people
begin to go back to work in larger numbers.
- Real has tightened its belt financially in order to put as many
resources as possible into this endeavor. Real has frozen employee
salaries and modified its 2020 executive bonus program.
Moreover, CEO Rob Glaser declined to
accept a 2019 bonus that would have been payable in
2020.
- Real today is announcing that it has received $2.87 million in funding pursuant to the Paycheck
Protection Program established as part of the Coronavirus Aid,
Relief, and Economic Security Act. This loan helps ensure that we
will be able to keep our staff at its current levels and likely
will enable us to bring several staff members back from
furlough.
"The extraordinary circumstances in which we are all now living
have brought significant challenges to RealNetworks, and we are
grateful that the CARES Act is helping businesses like Real weather
this storm with our workforces largely intact," said Mr. Glaser,
Founder, Chairman and Chief Executive Officer of RealNetworks.
"Combined with other measures, the additional funds from the PPP
loan will ensure that our employees are able to continue supporting
our customers and enhancing our digital products and services, both
to serve current customers and to address newly important societal
needs."
The $2.87 million loan, which is
eligible for forgiveness under the Paycheck Protection Program, has
an interest rate of 1% per annum, a six-month deferment period, and
matures on the two-year anniversary of disbursement. RealNetworks
intends to use the proceeds from the PPP loan exclusively to cover
payroll costs, as well as lease payments and utilities, in
accordance with program guidelines.
In addition to the directional change with its SAFR business,
Real has carefully studied the impact of the COVID-19 pandemic on
its other businesses and will have more to say on this topic during
its earnings call on May
6th. Today, Real reaffirms that its Q1 2020
financial results met or exceeded the guidance the Company provided
on February 5, 2020.
One additional area that Real believes has been affected by the
COVID-19 pandemic is the stock market. On April 23rd, as the Company expected, Real
received a notification from The Nasdaq Stock Market that as of
April 23, 2020, RNWK no longer meets
Nasdaq's minimum bid price requirement.
Amid the extreme market uncertainty, Nasdaq recently implemented
a grace period through June 30, 2020
for compliance with its bid price rule, allowing companies to focus
on managing their businesses through the challenges caused by the
COVID-19 pandemic. The Company has until December 28, 2020 to regain compliance with the
minimum bid price requirement and expects to take action well
before then to bring the Company back into compliance.
About RealNetworks
Building on a legacy of digital media expertise and innovation,
RealNetworks has created a new generation of products that employ
best-in-class artificial intelligence and machine learning to
enhance and secure our daily lives. SAFR (www.safr.com) is the
world's premier facial recognition platform for live video. Leading
in real-world performance and accuracy as evidenced in testing by
NIST, SAFR enables new applications for security, convenience, and
analytics. For information about our other products,
visit www.realnetworks.com.
RealNetworks is a registered trademark of RealNetworks, Inc.
All other trademarks, names of actual companies and products
mentioned herein are the property of their respective
owners.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties, including statements relating to
the Company's impacts, plans and expectations relating to the
current pandemic, product innovations and markets, use of proceeds
from and potential forgiveness of the PPP Loan, and ability
to regain compliance with Nasdaq's continued listing standards. All
statements contained in this press release that do not relate to
matters of historical fact should be considered forward-looking
statements. These statements reflect our expectations as of
today, and actual results may differ materially from the results
predicted. Factors that could cause actual results for
RealNetworks, on a consolidated basis, to differ from the results
predicted include: our ability to realize operating efficiencies,
growth and other benefits from the implementation of our growth
initiatives and restructuring efforts; cash usage and conservation,
and the pursuit of additional funding sources; successful
monetization of our products and services; competitive risks,
including the emergence or growth of competing technologies,
products and services; potential outcomes and effects of claims and
legal proceedings; risks associated with key customer or strategic
relationships and business acquisitions; disruptions in the global
financial markets, including changes in consumer spending and
impacts to credit availability; fluctuations in foreign currencies;
and unique risk factors that relate to our Napster segment, such as
risks stemming from its streaming music service and related music
royalties. More information about potential risk factors that could
affect our business and financial results is included in
RealNetworks' annual report on Form 10-K for the most recent year
ended December 31, its quarterly
reports on Form 10-Q and in other reports and documents filed by
RealNetworks from time to time with the Securities and Exchange
Commission. The preparation of our financial statements and
forward-looking financial guidance requires us to make estimates
and assumptions that affect the reported amount of assets and
liabilities, and revenues and expenses during the reported period.
Actual results may differ materially from these estimates under
different assumptions or conditions. RealNetworks assumes no
obligation to update any forward-looking statements or information,
which are in effect as of their respective dates.
For More Information:
Investor Relations for
RealNetworks
Kimberly Orlando, Addo Investor
Relations
310-829-5400
IR@realnetworks.com
RNWK-F
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SOURCE RealNetworks, Inc.