Imax has big plans despite quarter loss
'Clones,' 'Apollo' open strong; co. inks new theater deals
"Our financial turnaround continues unabated, notwithstanding the previously indicated loss, which was smaller than expected," co-CEOs Rich Gelfond and Brad Wechsler said in a statement.
The duo pointed to strong openings for the reformatted "Star Wars: Episode II -- Attack of the Clones" and "Apollo 13" and an increase in the number of new signings as evidence of the company's continuing recovery after a shaky 2001.
During the quarter, Imax inked five new theater system deals, compared with two in the third quarter of 2001.
Imax's loss for the quarter ended Sept. 30 was the first red ink for the Toronto-based company for several quarters, but a great improvement from the hefty loss posted in third-quarter 2001 of $139.6 million. Revenue for the quarter was $23.7 million, holding steady with the $23.3 million posted in the year-ago quarter.
Systems revenue led the bottom-line loss for the quarter, dropping by 29% to $9.6 million, as the number of theater systems added to the books was just one in third-quarter 2002, compared with more a year ago.
Imax is gambling that its DMR technology, which converts live-action 35mm film to Imax format at the relatively modest cost of $2 million to $4 million per feature, will propel the company into the Hollywood mainstream. "Our attitude right now is: 'What's to prove? It works,' " Wechsler said, "and I think the studios are endorsing that view as well."
Last week Imax and Regal Entertainment inked a deal that includes installing Imax theater systems in four Edwards Theaters and one UA theater, and -- provided the deal is OK'd by regulators -- resolves Imax's claims relating to Edwards' bankruptcy.
