Shares of the Bev Hills-based company are taking a hit after weaker-than-expected quarterly revenues. Actually, RealD stock has lost 47.3 percent of its value since May 19. The problem is that 3-D viewing has become a luxury that many movie-goers believe they can do without, even though the folks at RealD say that 3D pushback has been overstated. From deadline.com:
CEO Michael Lewis told analysts that recent skepticism about 3D is overblown. He says the economics "are compelling" -- about half of the global box office for the second part of Warner Bros' Harry Potter And The Deathly Hallows will come from tickets for 3D showings. "The media and the pundits have focused on films like Harry Potter and used words like 'disaster' and 'disappointing'," Lewis told analysts. "I'll take one of those 'disasters' every weekend." He urged investors not to focus so much on the declining box office share for 3D. "It is the dollars that really matter," Lewis says.