RealD Reports Larger Sales, Smaller Loss
The 3D movie company says it isn't interested in selling itself to Starboard Value
RealD reported Monday that revenue in its most recent quarter rose 8 percent to $47.4 million and the company lost $1.6 million, an improvement over the same quarter last year when it lost $4.7 million.
On an earnings-per-share basis, the 3D movie company lost 3 cents, while in the same frame a year ago it lost 9 cents.
RealD's earnings report comes as 10 percent shareholder Starboard Value says it would like to purchase the entire company for $12 a share. On Monday, the stock closed 3 percent higher at $11.61.
On Monday, RealD told shareholders that the company's board of directors "carefully reviewed" the unsolicited offer from Starboard "and unanimously determined not to pursue it."
Nine 3D films were released in the quarter and box office generated on RealD-enabled screens was $618 million, the company said.
In the current quarter, the company so far has 3D versions of five titles planned: Book of Life, Big Hero 6, The Penguins of Madagascar, Exodus: Gods and Kings and The Hobbit: The Battle of the Five Armies.
"Over the past year, we have evaluated all aspects of our business and are in the process of taking additional steps designed to enhance shareholder value," CEO Michael Lewis said Monday. "As part of this effort, we are actively evaluating alternatives, in consultation with our outside advisors, for restructuring our R&D efforts."