RealD plans to lay off one in five workers
Last Updated: 16:33 November 4, 2013
RealD (NYSE: RLD), a maker of 3-D movie and video monitors, is based in Beverly Hills, California, but it has a significant manufacturing and research and development presence in Boulder.
Last winter, the city of Boulder rewarded RealD with an $80,000 rebate package for keeping its research and development center in town at a 55,700-square-foot space at 5700 Flatirons Parkway.
A company statement said the 20 percent cuts amount to about 35 positions being eliminated, impacting all departments in Beverly Hills and Boulder. A RealD spokesman said the company will have about 140 employees after the cuts, although information about how many of the cuts will come in Boulder was not disclosed.
The SEC filing stated that the cuts would amount to about a $6 million reduction in annual operating expenses. RealD expects to recognize a restructuring charge of $3.8 million to $4.1 million for the remaining two quarters of fiscal year 2014.
The reduction is a result of industry trends and RealD's business maturing in countries such as the United States, where equipment installations have slowed. That is despite the fact, the statement said, that the company continues to expand its platform in markets such as China and Russia.
RealD shares were trading at $7.09 as of mid afternoon Monday, although they've been as high as $16.05 over the past year. RealD has not yet reported revenue for the most recent quarter. But its revenue for the quarter ending June 30 was $59.2 million, with a net loss of about $1.5 million.
More breaking news...
Level 3 posts profit, announces $600M private offering
Craft beer sales up 18 percent through June
Dot Hill Systems to discuss 2Q earnings Aug. 7
A conference call is