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UPDATE 1-RealNetworks posts lower revenues, but beats Street

* Q1 EPS 5 cents vs year-ago loss 10 cents

* Q1 revs down 9 pct to $128.6 mln, but tops Street view

* Sees Q2 revenue declines

LOS ANGELES, May 6 (Reuters) - Digital media company RealNetworks Inc RNWK.O said on Thursday that revenue fell 9 percent in the first quarter on a decline in games and music products and it sees further declines in the second quarter.

First-quarter revenue fell 9 percent to $128.6 million from $140.8 million in the year-ago quarter.

Revenue topped expectations. Analysts on average were forecasting revenues of $125.64 million, according to Thomson Reuters I/B/E/S.

The stock held steady in after-hours trade after closing at $4.04.

Net income was $3.2 million, or 5 cents per share, compared with a net loss of $12.1 million, or 10 cents per share a year ago.

RealNetworks said the latest quarter was boosted by a one-time $2.6 million tax benefit and a $10.9 million restructuring gain related to the Rhapsody music service.

The quarter also included restructuring charges of $5.6 million, while the year-ago net loss included restructuring charges of $800,000.

The company said it expects the second quarter to be the low point in 2010 for both revenue and adjusted earnings before interest, taxes, depreciation and amortization, with improvements seen in the second half of the year as restructuring efforts take hold.

Reporting by Susan Zeidler

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