IMAX loss deepens on digital technology costs
TORONTO (Reuters) - Giant-screen movie theater firm Imax Corp (IMX.TO)(IMAX.O) reported a deeper second-quarter loss on Thursday as it continued to invest in its transition to digital technology.
Mississauga, Ontario-based Imax also said it delivered and installed its first digital projection systems at three AMC Entertainment theaters in the United States.
The company lost $12.2 million, or 29 cents a share, in the period ended June 30, compared with a loss of $4.5 million, or 11 cents a share, in the year-earlier period.
Revenue slipped to $21.2 million from $27.1 million, the company said.
Investors appeared disappointed by the results, driving Imax shares 50 Canadian cents, or 6.1 percent, lower to C$7.69 on the Toronto Stock Exchange on Thursday morning.
The second-quarter results reflected "investments made to transition the company to a digital platform, two fewer system installations for which we could recognize revenue as well as difficult year-over-year comparisons to last year's highly successful 'Spider-Man 3'," the company said.
Imax said the latest Batman film, "The Dark Knight", and strength in its second-half film slate will offset the year-to-date softness.
Imax said it remains on track to install about 50 digital systems by year-end.
($1=$1.05 Canadian)
(Reporting by Jennifer Kwan and Wojtek Dabrowski; Editing by Peter Galloway)
