Nov. 13 (Bloomberg) -- RealD Inc., a provider of 3-D technology to cinemas, surged the most since its initial public offering more than three years ago after it reported a narrower loss than analysts’ estimated.
RealD rose 25 percent to $8.76 at the close in New York, the biggest one-day gain since its IPO in July 2010. The Beverly Hills, California-based company had fallen 38 percent this year through yesterday, compared with a 24 percent gain in the Standard & Poor’s 500 Index.
The company yesterday reported its loss widened to $4.7 million, or 9 cents a share, in its second fiscal quarter of 2014 which ended Sept. 30., from $4.2 million or 8 cents a share in the year earlier period. That beat analysts’ estimates for a loss of 19 cents a share. Sales fell 20 percent to $43.9 million in the quarter, exceeding analysts’ estimates of $41.6 million.
RealD said earlier this month it plans to eliminate about 20 percent of its workforce as a result of slowing installations.
Chief Executive Officer Michael Lewis said yesterday that he the popularity of the film “Gravity” shows that “RealD’s platform can deliver strong results” when all the factors are in place. He also announced new contracts to install a total of 250 new screens in China and Russia, two of the fastest growing cinema markets.
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