Imax Corp. says new format and box office strength will boost revenue
On a conference call, Imax Corp. (Nasdaq: IMAX) executives said the company will see improved financials in 2007, but that the year will be “transitional from a financial perspective” as the company continues its transition to a digital format from prints, co-CEO Bradley Wechsler said. The company is paying for theaters to update to its new digital delivery system and hopes the cost savings to theater owners will help the company expand its network, Wechsler said.
This morning, the company restated its financials back to 2002. Imax also said it will finally file its last five quarterly statements with the SEC today. The company changed its recognized revenue practices – now only treating completed and signed-for new installations will count as recognized revenue. Previously, the company booked theater components installed in old locations.
Wechsler also announced that the company has 19 new deals during the first half of the year.
For the first quarter ended March 31, the company said it lost $4.9 million, or $0.12 per share, compared with a $23.3 million loss, or $0.15 per share, in the same period of 2006. First-quarter revenue rose to $27.2 million, from $23.3 million a year earlier. The company saw record revenues from 300 and Spider-Man 3, Wechsler said. Imax expects its future lineup to be strong as well, with the big-budget CGI movie Beowulf released this fall and a new Batman movie being released in summer 2008, he said.
Analysts were expecting revenue of $21.7 million and an EPS loss of $0.14.
In midday trading, shares of the company are up $0.26, or 5.9%, at $4.66. Over the last 52 weeks, Imax shares have ranged between $3.32 and $11.
