RealD Identifies $16 Million in Additional Expenditure Reductions

RealD Inc. (NYSE: RLD), a leading global visual technology company, said today 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.

These cost savings are reflected in the following guidance for fiscal year 2016:

• 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.

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.

“With the leading 3D cinema platform worldwide, next year’s film slate and the reduced expenditures reflected in today’s FY16 guidance, we are excited about the future of RealD,” commented Michael V. Lewis, Chairman and Chief Executive Officer of RealD.

About RealD Inc.

RealD is a leading global licensor of 3D and other visual technologies. RealD's extensive intellectual property portfolio is and can be used in applications that enable a premium viewing experience in the theater, the home and elsewhere. RealD’s core business is the licensing of its RealD Cinema Systems and the product sale of RealD eyewear to motion picture exhibitors to enable a premium viewing experience for 3D motion pictures and alternative 3D content in the theater.

RealD was founded in 2003 and has offices in Beverly Hills, California; Boulder, Colorado; London, United Kingdom; Moscow, Russia; Shanghai, China; Hong Kong; Tokyo, Japan; and Rio de Janeiro, Brazil. For more information, please visit our website at www.reald.com.

Cautionary Note on Forward-Looking Statements

This press release includes forward-looking information and statements, including but not limited to: statements concerning or relating to anticipated future financial and operating performance, including reductions in operating expenses and capital expenditures; the progress, timing and amount of expenses associated with our research and development activities; anticipated 3D motion picture releases scheduled for fiscal year 2016 ending March 31, 2016 and beyond, and their 3D commercial success; our ability to continue to derive substantial revenue from the licensing of our 3D technologies for use in the motion picture industry; our expectations regarding demand for, deployment of and acceptance of our products and products using our technologies; and market and industry growth opportunities and trends in the market in which we operate.

These statements are based on our management’s current expectations and beliefs, as well as a number of assumptions concerning future events. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside our management’s control that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors and risks that may impact these forward-looking statements, include but are not limited to, unexpected and/or unbudgeted operating expenses and capital expenditures; our ability to execute and achieve anticipated savings or other benefits from our cost reduction efforts; changes to anticipated 3D motion picture releases and their release schedules; changes to consumer demand for 3D motion pictures in domestic and international markets; exhibitors’ willingness to schedule, and the scheduling of, showing times for 3D movies; our relationships with exhibitor and studio partners; changes to the business model for 3D eyewear; competitive pressures in domestic and international cinema markets impacting license and product revenues; and changes to our strategy in response to market and other developments. RealD’s Annual Report on Form 10-K for the twelve months ended March 31, 2014 and other documents filed with the SEC include a more detailed discussion of risks and uncertainties that may cause actual results to differ materially from the results discussed in the forward-looking statements.

RealD undertakes no obligation to update publicly the information contained in this press release, or any forward-looking statements, to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.