The stock is down more than 18% in after hours trading following the report for the period that ended in June. RealD generated net income of $2.9M, -68.7% vs the same quarter last year, on revenues of $68.2M, +14.5%. But analysts expected revenues of $70.4M. And earnings at five cents a share fell way short of the consensus forecast of 15 cents. CEO Michael Lewis says that the profit drop was “impacted by a $5.9M decline in our product gross profits” due to “a significantly reduced mix of recycled eyewear shipped to RealD-equipped theaters during the quarter.” The company says that doesn’t affect its growth prospects. At the end of the quarter there were about 20,700 RealD-enabled screens, up 18% from a year ago. Lewis says that RealD “will generate strong cash flows during fiscal 2013 as our spending on capital expenditures moderates.” The company says that revenues will decline in the current quarter vs last year which included mega-hits Warner Bros’ Harry Potter And The Deathly Hallows Part 2 and Paramount’s Transformers: Dark Of The Moon.
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