3D technology company RealD Inc. on Thursday said that it swung to a profit in its fiscal fourth quarter, mainly due to lower exhibitor incentive expenses.
Results were better than analysts expected, but shares fell more than 6 percent in after-hours trading.
After the markets closed, the Beverly Hills technology licensing company reported net income of $4.5 million (8 cents per share) for the quarter ended March 25, compared with a net loss of $20.9 million (-85 cents) a year earlier. Revenue rose 6 percent to $58.5 million.
Analysts surveyed by Thomson Reuters on average expected a per-share loss of 15 cents on revenue of $51.9 million.
Results include a motion picture exhibitor option expense of $2.4 million, compared with $21.3 million a year earlier. The options provide early-adopter incentives for exhibitors to install the technology in their theaters by giving them a stake in the company. The company said that as of the end of the quarter, all exhibitors participating in the program had met installation targets required for vesting, so it does not expect to take such charges in the future.
About 11,300 screens worldwide now can show movies using RealD’s technology.
“The fourth quarter capped an outstanding fiscal 2011 for RealD,” Chief Executive Michael V. Lewis said in a statement. “Our significant increase in RealD-enabled screens, particularly in international markets, will enable a larger audience of moviegoers around the world to enjoy RealD’s distinctive and immersive 3D visual experience.”
Shares earlier closed up 20 cents, or less than 1 percent, to $24.07 on the New York Stock Exchange, but were down 6.5 percent in after-hours trading.
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