Translating into less than a penny a share, it's not exactly a resounding financial rebound, but RealNetworks today posted a quarterly profit of $1.5 million for the third quarter -- moving itself back into the black for the first time in more than a year.

However, the number of subscribers to the company's Rhapsody music service fell to 700,000 in the third quarter -- a 50,000-subscriber decrease from the second quarter, despite the release of a Rhapsody app for the iPhone in the final month of the quarter. Company officials had said that they expected the iPhone app to be primarily used by existing Rhapsody subscribers, rather than attracting a significant number of new ones.

For the quarter, the Seattle digital media company's revenue of $140.3 million was down more than 7 percent from the same period last year, but up from the $135.7 million posted by the company in the second quarter of this year. In a news release announcing the earnings, CEO Rob Glaser credited that sequential growth and a reduction in operating expenses for the stronger outcome on the bottom line.

Year-over-year quarterly revenues declined from $34.2 million to $29.5 million in the company's games business; and from $41.6 million to $38.8 million in the company's music business. Media software and services revenue was up slightly, to $24.6 million.