RealD Inc. Identifies $16 Mln In Additional Expenditure Reductions

(RTTNews) - RealD Inc. (RLD) announced that it has identified $16 million in additional cost savings as it continues its efforts to streamline its organization and introduce additional efficiencies to its cost structure.

The company said these cost savings are reflected in the guidance for fiscal year 2016 with pro-forma operating expense of $74 to $76 million, an $11.5 million reduction as compared to the company's fiscal year 2015 guidance at the mid-point of its ranges.

Capital expenditures of $13 to $15 million, a $4.5 million reduction as compared to the Company's fiscal year 2015 guidance at the mid-point of its ranges.

RealD said operating expense savings will be realized across the organization through headcount reductions, the downsizing of facilities, and the elimination of certain sales and marketing and research and development expenditures. The anticipated reduction in capital expenditures is consistent with the company's strategy to capitalize on its core cinema platform and focus theatrical installations in its higher growth markets.

These incremental savings, when combined with the cost reductions initiated in October 2013, are expected to result in a total reduction in expenditures of $30 million, or over 25%, over the two-year period from fiscal year 2014, according to the company.