RealD Swings to LossWednesday, August 7, 2013
A tough season at the box office and fewer 3-D releases took a toll on RealD Inc. of Beverly Hills, which swung to a loss in its fiscal first quarter.
The 3-D technology firm announced after the close of the markets Wednesday a loss of $1.5 million (3 cents a share) for the quarter ended June 30, compared with net income of $3 million (5 cents a share) in the same quarter a year ago. Revenue fell 13 percent to $59.2 million from $68.2 million a year earlier.
Part of the challenge was that only eight 3-D movies were released in the quarter, compared with 10 releases last year. What’s more, some of those 3-D releases, such as Universal’s “R.I.P.D.,” were box office duds.
"We had a challenging first quarter, as moviegoers were more selective than expected regarding the films they chose to experience in 3-D,” Michael V. Lewis, chairman and chief executive, said in a statement.
Also on Wednesday, the company announced a deal with Mexican cinema chain Cinemex to install its 3-D technology on about 700 screens. RealD’s technology is installed on about 23,500 screens around the world.
RealD shares Wednesday fell 30 cents, or 2.8 percent, on the New York Stock Exchange. Shares were up 6 cents, or six-tenths of a percent, in afterhours trading.