PREVIOUS: It wasn’t a horrible miss, but it comes off of expectations that were already pretty low for the 3D technology company. RealD reported a net loss of $4.2M, down from an $18.9M profit a year ago, on revenues of nearly $55M, -37.5%. Revenues beat the consensus forecast for $50.5M. But the loss of 8 cents a share contrasts with the Street’s expectation for a 7 cent loss. Investors may be even more concerned about the company’s lowered guidance for the remainder of fiscal 2013: It says that it has “moderated expectations for growth” that reflect “slower-than-anticipated growth in headcount” as well as a shift in timing for “certain initiatives.” CEO Michael Lewis says that the quarter that ended in September presented “a very challenging comparison versus last year’s second quarter that included exceptional contributions from Harry Potter and Transformers.” He also told analysts that the Olympics hurt. But the company isn’t leaving investors empty handed. RealD reduced its outlook for operating expenses to as much as $100M from its previous forecast of as much as $110M. That “should help profitability somewhat,” B. Riley & Co analyst Eric Wold says. RealD also says that it repurchased about 2.4M shares in Q2.
BEIJING & LOS ANGELES–RealD Inc. (NYSE: RLD), a leading global licensor of 3D technologies, and Womei Theater Chain today announced an agreement to equip 100 screens across the Womei Theater Chain in China with RealD 3D technology. The most light efficient and widely used 3D cinema projection technology in the world, RealD 3D installations across the Womei Theater Chain have already begun and are expected to continue over two years.
“Our cooperation with RealD represents a perfect combination between the leading global 3D technology and a five-star level cinema. Together, we will introduce a new sensation of cinema-going for the Chinese moviegoers.”
“The Womei Theater Chain aims to build five-star level interactive cinemas with high-end screening facilities, extraordinary viewing environments and quality services, providing movie-lovers a unique viewing experience,” said the management team of Womei Theater Chain. “Our cooperation with RealD represents a perfect combination between the leading global 3D technology and a five-star level cinema. Together, we will introduce a new sensation of cinema-going for the Chinese moviegoers.”
“The Chinese cinema box office continues to grow at a record rate while the appetite for 3D by Chinese moviegoers remains among the highest in the world,” said Edman Chan, General Manager of Asia for Cinema at RealD. “China is the most populous nation in the world and these installations of RealD 3D across the Womei Theater Chain will further broaden the availability of RealD’s unique, realistic and immersive theatre experience.”
Womei Theater Chain currently operates 4 cinema locations with 33 auditoriums across China, including a cinema of 8 screens expected to be opened in Chongqing by the end of October. In the next five years, the company plans to open a total of 200 cinemas totaling 1000 screens, with an aim of reaching the top-five in box office among all movie theater chains in China.
RealD 3D is currently available on approximately 850 cinema screens in China with future commitments for more than 1,200 additional installations for a total of more than 2,000 screens committed.
RealD is the world’s most widely used 3D cinema technology with more than 20,700 screens equipped with RealD 3D by approximately 900 exhibitors in 68 countries around the world (as of the quarter ended June 22, 2012). Capable of delivering twice the light of competing 3D technologies, RealD 3D is High Frame Rate compatible and can be shown on screens up to 82 feet (25 meters) wide with a single digital cinema projector.