Shares of RealD Inc. slumped 16 percent Friday morning, a day after the 3-D technologies developer reported a big profit for the first quarter but also a drop in revenues that was far below expectations.

After the markets closed, the Beverly Hills company reported net income of $9.6 million (17 cents per share) compared with $2.95 million (9 cents) a year ago.

Net revenue fell 7.7 percent to less than $59.6 million. License revenue jumped 39 percent to $35.7 million, but product and other revenue dropped 39 percent to $23.8 million. The company believes it is selling fewer RealD 3-D glasses because repeat moviegoers are reusing their glasses. The gross margin nearly doubled to 59 percent

Analysts surveyed by Thomson Reuters on average expected the company to report per-share profit of 4 cents on revenue of $78.9 million.

Chief Executive Michael Lewis was upbeat, despite continuing investor concerns that the 3-D novelty may wear off.

"Continued growth in 3-D box office receipts, led by the outperformance of international markets, contributed to RealD's strong financial results for the quarter," Lewis said in a statement.

Shares closed down $2.94, or 16 percent, to $15.48 on the New York Stock Exchange.

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