RealD (RLD) Tops Q2 EPS by 6c, Won't Pursue Offer from Starboard Value LP

RealD (NYSE: RLD) reported Q2 EPS of ($0.03), $0.06 better than the analyst estimate of ($0.09). Revenue for the quarter came in at $47.4 million versus the consensus estimate of $43.8 million.

"We are pleased with our fiscal second quarter results, which reflect modest growth in licensing revenues coupled with strong increases in Adjusted EBITDA and free cash flow,” commented Michael V. Lewis, Chairman and Chief Executive Officer of RealD. “Our performance reflects broader box office improvement, continued stabilization in global 3D percentages and previously enacted cost cutting measures. We are pleased with our efforts to support 3D viewership and continue to work with our studio and exhibitor partners to optimize 3D performance across our platform.”

Mr. Lewis continued, “Over the past year, we have evaluated all aspects of our business and are in the process of taking additional steps designed to enhance shareholder value. As part of this effort, we are actively evaluating alternatives, in consultation with our outside advisors, for restructuring our R&D efforts: Consumer, Laser, Screen and RealD TrueImage™. We expect the outcome of this process to result in a further streamlining of our organization and efficiencies in our cost structure.”

RealD management and its Board of Directors believe the value of its business will benefit from the strength of its cinema platform and upcoming film slate, the value inherent in its IP portfolio, and the changes being made to further reduce operating expenses and capital expenditures. The Company strongly believes that the aforementioned actions will enhance value for all RealD shareholders. Accordingly, the RealD Board, in consultation with outside financial and legal advisors, has carefully reviewed the unsolicited indication of interest from Starboard Value LP and unanimously determined not to pursue it.

For earnings history and earnings-related data on RealD (RLD) click here.

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