RealD Reports Sharp Drop in Profits in Second Quarter
In after-hours trading, 3D technology company hit hard after reporting net income down from $9.6 million a year ago to $3 million.
RealD, the 3D exhibition specialist, reported disappointing earnings in the second quarter of 2012.
Net income at the company came in at $3 million, which is down from $9.6 million the same quarter last year. The company blamed declines on its products sector, namely the result of "a significantly reduced mix of recycled 3D eyewear shipped to RealD-equipped theaters."
Revenue at the company from products and licensing was $68.2 million, an increase of 14 percent from the previous year but short of analyst expectations.
Michael V. Lewis, chairman and CEO of RealD, chose to stress the positives.
“The first quarter marked a solid increase in license revenue year-over-year, highlighting the continued strength of our premium cinema format on a global basis,” said Lewis.
Lewis acknowledged the big decline in product gross profits, but insists that cash flow will be strong during the rest of the year as spending on capital expenditures moderates.
The results of the company were expected to be strong based on films released last quarter in the 3D market, including The Avengers, Men in Black III, Madagascar 3, Prometheus and Brave. According to data estimates by Stifel, 3D accounts for somewhere between 30 and 40 percent of the box office of a blockbuster film. But somehow, that hasn't translated into a strong second quarter.
RealD's stock price finished slightly down at the close of market on Monday at $12.60 per share. But in early after-hours trading, the stock was being pummeled, off about 20 percent.
- MOST SHARED
- MOST POPULAR
- Here Is A Photo Of Mariah Carey Dressed As A Bunny And Using Nick Cannon As Furniture
- Animal Welfare Activists Picket Liam Neeson's NYC Home Over Carriage Horse Issue
- The Winner In The War Between Xbox One, PS4 And Wii U Is... Everyone
- Jack White Records, Releases Single In Hours For Record Store Day 2014