Nov. 3 (Bloomberg) -- RealD Inc., the maker of 3-D projection gear for cinemas, fell 22 percent after Samsung Electronics Co. dropped plans to use the company’s technology in flat-screen televisions.
RealD, based in Beverly Hills, California, slid to $8.81 at 11:52 a.m. in New York, the biggest intraday loss since Sept. 28. The shares had slumped 57 percent this year before today.
“Samsung has decided to focus on our own initiatives of 3- D technology,” the Suwon, South Korea-based company said in an e-mailed response to queries from Bloomberg News.
RealD has sought to expand into TV as broadcasters and cable networks prepare to offer more movies and sports. Chief Executive Officer Michael Lewis explained Samsung’s decision on a earnings conference call yesterday. Sony Corp. said in September it would stop paying for the glasses moviegoers wear at theaters showing 3-D movies.
“This management team had talked up the Samsung deal as a major event,” said Rich Greenfield, an analyst for BTIG LLC in New York. “We’re now in a situation where Samsung has decided not to move forward. I think cost was a major issue and this is a major blow to management’s credibility.”
Samsung, the world’s largest TV maker, cited weak demand for liquid-crystal-display screens and a faltering economy, Lewis said on the call.
RealD and Samsung planned to develop 23-inch and 27-inch computer monitors and a 55-inch TV screen, according to a statement released in May.
“We’re still very bullish on the technology,” Lewis said. “We’re going to do everything we can to get it out in the marketplace despite the headwinds we’ve encountered.”
--With assistance from Xu Wang in New York and Rob Golum in Los Angeles. Editors: Rob Golum, Cecile Daurat
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