Citing the absence of payments related to its antitrust settlement and commercial agreements with Microsoft, RealNetworks (Nasdaq: RNWK) said its Q2 net income plunged 96.7 percent to $1.3 million, or $0.01 per diluted share, compared to $38.9 million or $0.22 per diluted share, last year. The digital player company received a set of payments from Microsoft spread out over last year, which boosted RealNetworks’ Q206 earnings significantly; the last payment it received was in Q107. Meanwhile, revenue grew 52 percent to $136.2 million in Q2 versus $89.4 million during the same period in 2006. Other Q2 highlights:

-- Gross margin was 64 percent compared to 70 percent in Q206.

-- Music revenue was $36.8 million, a 22 percent rise over last year.

-- Games revenue came in at $24.9 million, up 17 percent.

-- Media Software and Services revenue dropped 3 percent to $25.4 million.

-- For Q3, RealNetworks expects revenue in the range of $141 million to $145 million.

-- Technology Products and Solutions segment revenue was $49.1 million, a 310 percent increase over the second quarter of 2006, due to the acquisition of mobile entertainment company, WiderThan. Earnings release | Webcast

-- Update: Rob Glaser, RealNetworks’ chairman and CEO, began the company’s conference call with investors and analysts by discussing the company’s recent global mobile moves. He also discussed the company’s mobile music delivery strategies, which is heavily based on positioning itself against Apple’s iPhone. More details in the MocoNews post.