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RealD Inc. (NYSE: RLD), a leading global licensor of 3D technologies, today announced financial results for its third quarter of fiscal 2012 ended December 23, 2011.
Third Quarter Financial Highlights
Revenue was $49.0 million, a decrease of 15% from $57.8 million in the third quarter of fiscal 2011.
Net license revenue was $28.5 million, an increase of 51% from $18.8 million in the third quarter of fiscal 2011.
Net license revenue for the prior-year quarter is net of $22.0 million in motion picture exhibitor stock option expense (a contra revenue item). All exhibitor stock options vested in fiscal 2011 and RealD does not expect to incur exhibitor stock option expense during the current fiscal year or in future years.
Product and other revenue was $20.6 million, a decrease of 47% from $38.9 million in the third quarter of fiscal 2011. The decrease is partially attributable to an increasing number of international consumers returning to the cinema with RealD eyewear purchased at a previous RealD showing.
GAAP Results – Profitability Measures and Balance Sheet
GAAP net income attributable to common stockholders was $2.8 million, or $0.05 per diluted share, compared to a GAAP net loss attributable to common stockholders of $16.6 million, or $0.34 per share, for the third quarter of fiscal 2011.
Gross margin increased to 49% from 11% in the third quarter of fiscal 2011.
The Company’s balance sheet at December 23, 2011 included total cash and cash equivalents of $29.2 million and total debt of $25.0 million. The Company had $25.0 million available on its line of credit as of December 23, 2011.
Non-GAAPResults – Profitability Measures
Adjusted EBITDA was $16.2 million, a decrease of 4% from $16.9 million in the third quarter of fiscal 2011.
Adjusted EBITDA increased to 33% of net revenue from 29% of net revenue in the third quarter of fiscal 2011.
Adjusted EBITDA is defined within the section of this press release entitled “Use of Non-GAAP Financial Measures,” which includes a reconciliation to its most comparable GAAP measure, net income (loss).
“Prudent management of operating expenses enabled RealD to maintain profitability during the third fiscal quarter despite a relatively muted 3D film slate,” said Michael V. Lewis, Chairman and Chief Executive Officer of RealD. “Looking forward, we are excited about the promising slate of 3D films in our fiscal 2013 that begins on March 24, 2012, as well as continued expansion within international markets.”