RealD Profits Climb in Fiscal Q1, but Revenues Dip

Shares took a beating after the 3D company reported a revenue decline in its first fiscal quarter

Despite fears that moviegoers are falling out of love with ruby tinted glasses, 3D provider RealD saw earnings jump 9.1 percent year over year in the first quarter of its fiscal year.

Net income shot up to $9.6 million from $8.8 million the same period last year.

Revenues slid 7.7 percent to $59.6 million, however.

Wall Street did not respond favorably: RealD's stock took a beating in after-hour trading, dropping 15 percent to $15.50.

The number of RealD enhanced screens grew by approximately 2,500 during the period. The company now has 17,500 screens worldwide. 

“Our record profitability does not include revenue from Transformers and Harry Potter since the films opened after our quarter ended," Michael Lewis, RealD's CEO, said in a statement. "Transformers and Harry Potter have already generated more than $1.7 billion in box office globally, the majority from 3D screens.”

Keep
Reading...

Looks like you’re enjoying reading
Keep reading by creating
a free account or logging in.