RealD Shares Plunge 20% After Q2 Results Miss Estimates

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7/30/2012 9:48 PM ET

Shares of RealD, Inc. (RLD: Quote) plunged nearly 20 percent in extended trade on Monday after the global licensor of stereoscopic or 3D technologies reported Monday results for the first quarter that missed analysts' expectations. Profit for the quarter dropped 69 percent on higher costs, while quarterly revenue grew 14 percent from last year.

"The first quarter marked a solid increase in license revenue year-over-year, highlighting the continued strength of our premium cinema format on a global basis," Chairman and CEO Michael Lewis said in a statement.

The Beverly Hills, California-based company reported net income of $3.0 million or $0.05 per share for the first quarter, lower than $9.6 million or $0.17 per share in the prior-year quarter.

On average, 9 analysts polled by Thomson Reuters expected the company to report earnings of $0.15 per share for the first quarter. Analysts estimate typically exclude one-time items.

Profit was negatively impacted by a $5.9 million decline in "Product and Other" gross profits amid significantly reduced mix of recycled 3D eyewear shipped to RealD-equipped theaters during the quarter.

However, net revenues for the quarter increased 14 percent to $68.2 million from $59.56 million in the same quarter last year, but missed nine Wall Street analysts' consensus estimate of $70.38 million.

License revenue grew 15 percent to $41.2 million, and product and other revenue increased 13 percent to $27.0 million from last year.

International markets generated 56 percent of license revenue, compared to 58 percent of license revenue in the year-ago quarter.

Total operating expenses for the quarter increased to $23.06 million from $20.30 million in the year-ago quarter.

RLD closed Monday's regular trading session at $12.60, down $0.18 or 1.41% on a volume of 0.74 million shares. However, the stock plunged $2.49 or 19.76% in after hours trading.

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by RTT Staff Writer

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