RealD Lowers Financial Guidance After Fiscal Q2 Earnings Miss Expectations, Announces Expansion Of Business In China

UPDATE: RealD today also announced an agreement with the Womei Theater Chain to install its 3D cinema technology on 100 screens in China. See the release at the bottom.

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. (more…)

This article was printed from https://deadline.com/2012/10/reald-fiscal-q2-earnings-361752/