Attached files
| file | filename |
|---|---|
| 8-K - 8-K - REALNETWORKS INC | resegment8-k.htm |
| EX-99.2 - EXHIBIT 99.2 - REALNETWORKS INC | exhibit992resegment8-k.htm |
Exhibit 99.1
RealNetworks, Inc. and Subsidiaries
Segment Results of Operations
(Unaudited)
2011 | 2012 | |||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||
RealPlayer Group | ||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 24,333 | $ | 25,598 | $ | 24,987 | $ | 27,460 | $ | 102,378 | $ | 22,081 | $ | 22,158 | $ | 21,392 | $ | 25,838 | $ | 91,469 | ||||||||||||||||||||
Cost of revenue | 3,098 | 5,101 | 6,726 | 6,609 | 21,534 | 4,564 | 4,727 | 6,735 | 5,518 | 21,544 | ||||||||||||||||||||||||||||||
Impairment of deferred costs | — | — | — | 633 | 633 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Gross profit | 21,235 | 20,497 | 18,261 | 20,218 | 80,211 | 17,517 | 17,431 | 14,657 | 20,320 | 69,925 | ||||||||||||||||||||||||||||||
Gross margin | 87 | % | 80 | % | 73 | % | 74 | % | 78 | % | 79 | % | 79 | % | 69 | % | 79 | % | 76 | % | ||||||||||||||||||||
Operating expenses | 15,446 | 15,543 | 15,537 | 13,303 | 59,829 | 15,975 | 12,792 | 13,082 | 13,374 | 55,223 | ||||||||||||||||||||||||||||||
Operating income (loss) | $ | 5,789 | $ | 4,954 | $ | 2,724 | $ | 6,915 | $ | 20,382 | $ | 1,542 | $ | 4,639 | $ | 1,575 | $ | 6,946 | $ | 14,702 | ||||||||||||||||||||
Adjusted EBITDA | $ | 5,949 | $ | 5,444 | $ | 3,204 | $ | 8,035 | $ | 22,632 | $ | 1,985 | $ | 5,087 | $ | 2,275 | $ | 7,620 | $ | 16,967 | ||||||||||||||||||||
Mobile Entertainment | ||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 34,909 | $ | 32,854 | $ | 36,482 | $ | 31,207 | $ | 135,452 | $ | 25,775 | $ | 26,005 | $ | 22,820 | $ | 25,718 | $ | 100,318 | ||||||||||||||||||||
Cost of revenue | 19,539 | 17,354 | 19,805 | 17,826 | 74,524 | 15,478 | 14,875 | 12,740 | 14,577 | 57,670 | ||||||||||||||||||||||||||||||
Impairment of deferred costs | — | — | — | 19,329 | 19,329 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Gross profit | 15,370 | 15,500 | 16,677 | (5,948 | ) | 41,599 | 10,297 | 11,130 | 10,080 | 11,141 | 42,648 | |||||||||||||||||||||||||||||
Gross margin | 44 | % | 47 | % | 46 | % | (19 | )% | 31 | % | 40 | % | 43 | % | 44 | % | 43 | % | 43 | % | ||||||||||||||||||||
Operating expenses | 16,748 | 15,769 | 15,341 | 14,063 | 61,921 | 14,804 | 13,851 | 11,936 | 12,023 | 52,614 | ||||||||||||||||||||||||||||||
Operating income (loss) | $ | (1,378 | ) | $ | (269 | ) | $ | 1,336 | $ | (20,011 | ) | $ | (20,322 | ) | $ | (4,507 | ) | $ | (2,721 | ) | $ | (1,856 | ) | $ | (882 | ) | $ | (9,966 | ) | |||||||||||
Adjusted EBITDA | $ | 1,120 | $ | 2,301 | $ | 4,008 | $ | 1,974 | $ | 9,403 | $ | (2,077 | ) | $ | (409 | ) | $ | 341 | $ | 1,687 | $ | (458 | ) | |||||||||||||||||
Games | ||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 28,059 | $ | 25,300 | $ | 22,945 | $ | 21,552 | $ | 97,856 | $ | 19,108 | $ | 17,363 | $ | 14,876 | $ | 15,708 | $ | 67,055 | ||||||||||||||||||||
Cost of revenue | 8,578 | 8,088 | 7,247 | 6,922 | 30,835 | 6,713 | 5,630 | 4,989 | 4,496 | 21,828 | ||||||||||||||||||||||||||||||
Gross profit | 19,481 | 17,212 | 15,698 | 14,630 | 67,021 | 12,395 | 11,733 | 9,887 | 11,212 | 45,227 | ||||||||||||||||||||||||||||||
Gross margin | 69 | % | 68 | % | 68 | % | 68 | % | 68 | % | 65 | % | 68 | % | 66 | % | 71 | % | 67 | % | ||||||||||||||||||||
Operating expenses | 17,410 | 15,854 | 14,622 | 14,709 | 62,595 | 14,138 | 13,801 | 12,023 | 11,928 | 51,890 | ||||||||||||||||||||||||||||||
Operating income (loss) | $ | 2,071 | $ | 1,358 | $ | 1,076 | $ | (79 | ) | $ | 4,426 | $ | (1,743 | ) | $ | (2,068 | ) | $ | (2,136 | ) | $ | (716 | ) | $ | (6,663 | ) | ||||||||||||||
Adjusted EBITDA | $ | 2,700 | $ | 2,058 | $ | 1,762 | $ | 576 | $ | 7,096 | $ | (1,084 | ) | $ | (1,385 | ) | $ | (1,321 | ) | $ | (71 | ) | $ | (3,861 | ) | |||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||||||||||
Net revenue | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Cost of revenue | 851 | 123 | (1,962 | ) | 732 | (256 | ) | 672 | 730 | 780 | 507 | 2,689 | ||||||||||||||||||||||||||||
Gross profit | (851 | ) | (123 | ) | 1,962 | (732 | ) | 256 | (672 | ) | (730 | ) | (780 | ) | (507 | ) | (2,689 | ) | ||||||||||||||||||||||
Gross margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
(Loss) Gain on sale of patents and other technology assets, net of costs | — | — | — | — | — | (1,580 | ) | 117,933 | — | — | 116,353 | |||||||||||||||||||||||||||||
Operating expenses | 11,297 | 10,704 | 10,581 | 9,770 | 42,352 | 11,582 | 12,885 | 19,978 | 11,729 | 56,174 | ||||||||||||||||||||||||||||||
Operating income (loss) | $ | (12,148 | ) | $ | (10,827 | ) | $ | (8,619 | ) | $ | (10,502 | ) | $ | (42,096 | ) | $ | (13,834 | ) | $ | 104,318 | $ | (20,758 | ) | $ | (12,236 | ) | $ | 57,490 | ||||||||||||
Adjusted EBITDA | $ | (2,227 | ) | $ | (7,581 | ) | $ | (4,887 | ) | $ | (6,745 | ) | $ | (21,440 | ) | $ | (6,241 | ) | $ | (9,802 | ) | $ | (7,337 | ) | $ | (5,972 | ) | $ | (29,352 | ) | ||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 87,301 | $ | 83,752 | $ | 84,414 | $ | 80,219 | $ | 335,686 | $ | 66,964 | $ | 65,526 | $ | 59,088 | $ | 67,264 | $ | 258,842 | ||||||||||||||||||||
Cost of revenue | 32,066 | 30,666 | 31,816 | 32,089 | 126,637 | 27,427 | 25,962 | 25,244 | 25,098 | 103,731 | ||||||||||||||||||||||||||||||
Impairment of deferred costs | — | — | — | 19,962 | 19,962 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Gross profit | 55,235 | 53,086 | 52,598 | 28,168 | 189,087 | 39,537 | 39,564 | 33,844 | 42,166 | 155,111 | ||||||||||||||||||||||||||||||
Gross margin | 63 | % | 63 | % | 62 | % | 35 | % | 56 | % | 59 | % | 60 | % | 57 | % | 63 | % | 60 | % | ||||||||||||||||||||
(Loss) Gain on sale of patents and other technology assets, net of costs | — | — | — | — | — | (1,580 | ) | 117,933 | — | — | 116,353 | |||||||||||||||||||||||||||||
Operating expenses | 60,901 | 57,870 | 56,081 | 51,845 | 226,697 | 56,499 | 53,329 | 57,019 | 49,054 | 215,901 | ||||||||||||||||||||||||||||||
Operating income (loss) | $ | (5,666 | ) | $ | (4,784 | ) | $ | (3,483 | ) | $ | (23,677 | ) | $ | (37,610 | ) | $ | (18,542 | ) | $ | 104,168 | $ | (23,175 | ) | $ | (6,888 | ) | $ | 55,563 | ||||||||||||
Adjusted EBITDA | $ | 7,542 | $ | 2,222 | $ | 4,087 | $ | 3,840 | $ | 17,691 | $ | (7,417 | ) | $ | (6,509 | ) | $ | (6,042 | ) | $ | 3,264 | $ | (16,704 | ) | ||||||||||||||||
RealNetworks, Inc. and Subsidiaries
Reconciliation of segment operating income (loss) to adjusted EBITDA by segment
(Unaudited)
2011 | 2012 | |||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||
RealPlayer Group | ||||||||||||||||||||||||||||||||||||||||
Reconciliation of segment GAAP operating income (loss) to adjusted EBITDA by segment: | ||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 5,789 | $ | 4,954 | $ | 2,724 | $ | 6,915 | $ | 20,382 | $ | 1,542 | $ | 4,639 | $ | 1,575 | $ | 6,946 | $ | 14,702 | ||||||||||||||||||||
Acquisitions related intangible asset amortization | — | 53 | 79 | 79 | 211 | 79 | 79 | 62 | 62 | 282 | ||||||||||||||||||||||||||||||
Depreciation and amortization | 160 | 437 | 401 | 408 | 1,406 | 364 | 369 | 638 | 612 | 1,983 | ||||||||||||||||||||||||||||||
Impairment of deferred costs | — | — | — | 633 | 633 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 5,949 | $ | 5,444 | $ | 3,204 | $ | 8,035 | $ | 22,632 | $ | 1,985 | $ | 5,087 | $ | 2,275 | $ | 7,620 | $ | 16,967 | ||||||||||||||||||||
Mobile Entertainment | ||||||||||||||||||||||||||||||||||||||||
Reconciliation of segment GAAP operating income (loss) to adjusted EBITDA by segment: | ||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | (1,378 | ) | $ | (269 | ) | $ | 1,336 | $ | (20,011 | ) | $ | (20,322 | ) | $ | (4,507 | ) | $ | (2,721 | ) | $ | (1,856 | ) | $ | (882 | ) | $ | (9,966 | ) | |||||||||||
Acquisitions related intangible asset amortization | 474 | 709 | 833 | 789 | 2,805 | 802 | 786 | 796 | 809 | 3,193 | ||||||||||||||||||||||||||||||
Depreciation and amortization | 2,024 | 1,861 | 1,839 | 1,867 | 7,591 | 1,628 | 1,526 | 1,401 | 1,760 | 6,315 | ||||||||||||||||||||||||||||||
Impairment of deferred costs | — | — | — | 19,329 | 19,329 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 1,120 | $ | 2,301 | $ | 4,008 | $ | 1,974 | $ | 9,403 | $ | (2,077 | ) | $ | (409 | ) | $ | 341 | $ | 1,687 | $ | (458 | ) | |||||||||||||||||
Games | ||||||||||||||||||||||||||||||||||||||||
Reconciliation of segment GAAP operating income (loss) to adjusted EBITDA by segment: | ||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 2,071 | $ | 1,358 | $ | 1,076 | $ | (79 | ) | $ | 4,426 | $ | (1,743 | ) | $ | (2,068 | ) | $ | (2,136 | ) | $ | (716 | ) | $ | (6,663 | ) | ||||||||||||||
Acquisitions related intangible asset amortization | 254 | 257 | 257 | 229 | 997 | 209 | 207 | 171 | — | 587 | ||||||||||||||||||||||||||||||
Depreciation and amortization | 375 | 443 | 429 | 426 | 1,673 | 450 | 476 | 644 | 645 | 2,215 | ||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 2,700 | $ | 2,058 | $ | 1,762 | $ | 576 | $ | 7,096 | $ | (1,084 | ) | $ | (1,385 | ) | $ | (1,321 | ) | $ | (71 | ) | $ | (3,861 | ) | |||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||||||||||
Reconciliation of segment GAAP operating income (loss) to adjusted EBITDA by segment: | ||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | (12,148 | ) | $ | (10,827 | ) | $ | (8,619 | ) | $ | (10,502 | ) | $ | (42,096 | ) | $ | (13,834 | ) | $ | 104,318 | $ | (20,758 | ) | $ | (12,236 | ) | $ | 57,490 | ||||||||||||
Other income (expense), net | (123 | ) | (310 | ) | (228 | ) | 189 | (472 | ) | 1,475 | (49 | ) | 248 | (433 | ) | 1,241 | ||||||||||||||||||||||||
Depreciation and amortization | 532 | 537 | 565 | 578 | 2,212 | 586 | 601 | 604 | 593 | 2,384 | ||||||||||||||||||||||||||||||
Restructuring and other charges | 6,906 | 506 | 438 | 800 | 8,650 | 1,609 | 1,539 | 10,724 | 1,353 | 15,225 | ||||||||||||||||||||||||||||||
Stock-based compensation | 2,608 | 2,686 | 2,957 | 2,661 | 10,912 | 2,343 | 1,722 | 1,602 | 1,704 | 7,371 | ||||||||||||||||||||||||||||||
Loss (Gain) on sale of patents and other technology assets, net of costs | — | — | — | — | — | 1,580 | (117,933 | ) | — | — | (116,353 | ) | ||||||||||||||||||||||||||||
Loss (Gain) on excess office facilities | (2 | ) | (173 | ) | — | (471 | ) | (646 | ) | — | — | 243 | 3,047 | 3,290 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | (2,227 | ) | $ | (7,581 | ) | $ | (4,887 | ) | $ | (6,745 | ) | $ | (21,440 | ) | $ | (6,241 | ) | $ | (9,802 | ) | $ | (7,337 | ) | $ | (5,972 | ) | $ | (29,352 | ) | ||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||
Reconciliation of segment GAAP operating income (loss) to adjusted EBITDA by segment: | ||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | (5,666 | ) | $ | (4,784 | ) | $ | (3,483 | ) | $ | (23,677 | ) | $ | (37,610 | ) | $ | (18,542 | ) | $ | 104,168 | $ | (23,175 | ) | $ | (6,888 | ) | $ | 55,563 | ||||||||||||
Other income (expense), net | (122 | ) | (311 | ) | (228 | ) | 188 | (473 | ) | 1,475 | (49 | ) | 248 | (433 | ) | 1,241 | ||||||||||||||||||||||||
Acquisitions related intangible asset amortization | 728 | 1,019 | 1,169 | 1,097 | 4,013 | 1,090 | 1,072 | 1,029 | 871 | 4,062 | ||||||||||||||||||||||||||||||
Depreciation and amortization | 3,091 | 3,278 | 3,234 | 3,279 | 12,882 | 3,028 | 2,972 | 3,287 | 3,610 | 12,897 | ||||||||||||||||||||||||||||||
Loss (Gain) on excess office facilities | — | (174 | ) | — | (472 | ) | (646 | ) | — | — | 243 | 3,047 | 3,290 | |||||||||||||||||||||||||||
Restructuring and other charges | 6,904 | 508 | 438 | 800 | 8,650 | 1,609 | 1,539 | 10,724 | 1,353 | 15,225 | ||||||||||||||||||||||||||||||
Stock-based compensation | 2,607 | 2,686 | 2,957 | 2,663 | 10,913 | 2,343 | 1,722 | 1,602 | 1,704 | 7,371 | ||||||||||||||||||||||||||||||
Impairment of deferred costs | — | — | — | 19,962 | 19,962 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Loss (Gain) on sale of patents and other technology assets, net of costs | — | — | — | — | — | 1,580 | (117,933 | ) | — | — | (116,353 | ) | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 7,542 | $ | 2,222 | $ | 4,087 | $ | 3,840 | $ | 17,691 | $ | (7,417 | ) | $ | (6,509 | ) | $ | (6,042 | ) | $ | 3,264 | $ | (16,704 | ) | ||||||||||||||||
RealNetworks, Inc. and Subsidiaries
Supplemental Financial Information
(Unaudited)
2011 | 2012 | |||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||
Net Revenue by Line of Business | ||||||||||||||||||||||||||||||||||||||||
RealPlayer Group (A) | $ | 24,333 | $ | 25,598 | $ | 24,987 | $ | 27,460 | $ | 102,378 | $ | 22,081 | $ | 22,158 | $ | 21,392 | $ | 25,838 | $ | 91,469 | ||||||||||||||||||||
Mobile Entertainment (B) | 34,909 | 32,854 | 36,482 | 31,207 | 135,452 | 25,775 | 26,005 | 22,820 | 25,718 | 100,318 | ||||||||||||||||||||||||||||||
Games (C) | 28,059 | 25,300 | 22,945 | 21,552 | 97,856 | 19,108 | 17,363 | 14,876 | 15,708 | 67,055 | ||||||||||||||||||||||||||||||
Total net revenue | $ | 87,301 | $ | 83,752 | $ | 84,414 | $ | 80,219 | $ | 335,686 | $ | 66,964 | $ | 65,526 | $ | 59,088 | $ | 67,264 | $ | 258,842 | ||||||||||||||||||||
Net Revenue by Product | ||||||||||||||||||||||||||||||||||||||||
RealPlayer Group | ||||||||||||||||||||||||||||||||||||||||
- Licensing (D) | $ | 6,724 | $ | 7,222 | $ | 6,759 | $ | 10,939 | $ | 31,644 | $ | 7,733 | $ | 8,334 | $ | 6,757 | $ | 10,956 | $ | 33,780 | ||||||||||||||||||||
- Subscriptions (E) | 9,316 | 8,623 | 10,230 | 8,421 | 36,590 | 7,601 | 6,810 | 7,056 | 6,192 | 27,659 | ||||||||||||||||||||||||||||||
- Media Properties (F) | 8,293 | 9,753 | 7,998 | 8,100 | 34,144 | 6,747 | 7,014 | 7,579 | 8,690 | 30,030 | ||||||||||||||||||||||||||||||
Mobile Entertainment | ||||||||||||||||||||||||||||||||||||||||
- SaaS (G) | 30,525 | 30,216 | 30,381 | 28,255 | 119,377 | 23,464 | 23,286 | 20,696 | 22,793 | 90,239 | ||||||||||||||||||||||||||||||
- Systems Integration / Professional Services (H) | 1,840 | 388 | 3,844 | 771 | 6,843 | 426 | 965 | 247 | 1,295 | 2,933 | ||||||||||||||||||||||||||||||
- Licensing (I) | 2,544 | 2,250 | 2,257 | 2,181 | 9,232 | 1,885 | 1,754 | 1,877 | 1,630 | 7,146 | ||||||||||||||||||||||||||||||
Games | ||||||||||||||||||||||||||||||||||||||||
- Licensing (J) | 11,741 | 9,617 | 8,350 | 8,208 | 37,916 | 7,587 | 6,053 | 5,136 | 5,222 | 23,998 | ||||||||||||||||||||||||||||||
- Subscriptions (K) | 11,257 | 9,936 | 9,883 | 8,698 | 39,774 | 8,170 | 7,536 | 6,952 | 6,876 | 29,534 | ||||||||||||||||||||||||||||||
- Media Properties (L) | 5,061 | 5,747 | 4,712 | 4,646 | 20,166 | 3,351 | 3,774 | 2,788 | 3,610 | 13,523 | ||||||||||||||||||||||||||||||
Total net revenue | $ | 87,301 | $ | 83,752 | $ | 84,414 | $ | 80,219 | $ | 335,686 | $ | 66,964 | $ | 65,526 | $ | 59,088 | $ | 67,264 | $ | 258,842 | ||||||||||||||||||||
Net Revenue by Geography: | ||||||||||||||||||||||||||||||||||||||||
United States | $ | 44,469 | $ | 41,984 | $ | 38,969 | $ | 37,298 | $ | 162,720 | $ | 31,814 | $ | 28,614 | $ | 29,101 | $ | 28,315 | $ | 117,844 | ||||||||||||||||||||
Rest of world | 42,832 | 41,768 | 45,445 | 42,921 | 172,966 | 35,150 | 36,912 | 29,987 | 38,949 | 140,998 | ||||||||||||||||||||||||||||||
Total net revenue | $ | 87,301 | $ | 83,752 | $ | 84,414 | $ | 80,219 | $ | 335,686 | $ | 66,964 | $ | 65,526 | $ | 59,088 | $ | 67,264 | $ | 258,842 | ||||||||||||||||||||
Net Revenue by Line of Business | ||||||||||||||||||||||||||||||||||||||||
(A) The RealPlayer Group primarily includes revenue from RealPlayer and related products, such as the distribution of third party software products, advertising on RealPlayer websites, and sales of RealPlayer Plus software licenses to consumers, sales of intellectual property licenses, and consumer subscriptions such as SuperPass. | ||||||||||||||||||||||||||||||||||||||||
(B) The Mobile Entertainment division primarily includes revenue from SaaS services, system integration, and professional services to mobile carriers, and sales of technology licenses of our software products such as Helix. | ||||||||||||||||||||||||||||||||||||||||
(C) The Games division primarily includes revenue from sales of games licenses, online games subscription services, advertising on games sites and social network sites, microtransactions from online and social games, and sales of mobile games. | ||||||||||||||||||||||||||||||||||||||||
Net Revenue by Product | ||||||||||||||||||||||||||||||||||||||||
(D) Licensing revenue within the RealPlayer Group includes sales of RealPlayer Plus software licenses to consumers and sales of intellectual property licenses. | ||||||||||||||||||||||||||||||||||||||||
(E) Subscriptions revenue within the RealPlayer Group includes revenue from subscriptions such as SuperPass. | ||||||||||||||||||||||||||||||||||||||||
(F) Media Properties revenue within the RealPlayer Group includes distribution of third party software products and advertising on RealPlayer websites. | ||||||||||||||||||||||||||||||||||||||||
(G) SaaS revenue within Mobile Entertainment includes revenue from music on demand, video on demand, ringtones, ringback tones, and intercarrier messaging services provided to network services providers who are largely mobile phone networks. | ||||||||||||||||||||||||||||||||||||||||
(H) Systems Integration / Professional Services revenue within Mobile Entertainment includes professional services, other than those associated with software sales, provided to mobile carriers. | ||||||||||||||||||||||||||||||||||||||||
(I) Licensing revenue within Mobile Entertainment includes revenue from Helix-related products. | ||||||||||||||||||||||||||||||||||||||||
(J) Licensing revenue within Games includes retail games-related revenue, microtransactions from online and social games and sales of mobile games. | ||||||||||||||||||||||||||||||||||||||||
(K) Subscriptions revenue within Games includes revenue from online games subscriptions. | ||||||||||||||||||||||||||||||||||||||||
(L) Media Properties revenue within Games includes distribution of third party software products and advertising on games sites and social network sites. | ||||||||||||||||||||||||||||||||||||||||