Leading entertainment technology provider IMAX Corporation (NASDAQ: IMAX) had a rough day today, dropping 14 percent this morning on the second quarter results the company released after market close yesterday afternoon.
For starters, the company’s film revenues dropped to $8 million from $11.7 million the previous year. Film dollar margin also dropped, although by a much smaller percent, dipping from $3.8 million to $3.6 million this year. The company’s cash and short-term investments dropped as well, falling to $18.5 million from $27.4 million the year before. However, the news wasn’t all bad; the company’s theater operations revenue rose from $4.1 million to $4.7 million.
Despite the dip in revenue, IMAX’s Co-CEOs Richard Gelfond and Bradley Wechsler were positive about the upcoming year.
“As we have previously discussed, 2007 is expected to be a transitional year from a financial perspective,” Gelfond and Wechsler said in a joint statement. “That said, we are growing increasingly optimistic about the progress we are making in executing our strategic initiatives. Our strong film slate is contributing nicely to our momentum, as is the encouraging initial performance of our joint ventures. We expect to see continued positive trends in these areas in the back half of the year, driven most recently by the record-breaking performance of Harry Potter and the Order of the Phoenix: an IMAX 3D Experience.”
In addition, the company intends to partner with Paramount Pictures, Shangri-La Entertainment, and Concert Productions International to release an IMAX DMR version of the Rolling Stones concert film Shine A Light directed by Martin Scorsese. Plus, the company recently added I Am Legend: The IMAX Experience, starring two-time Academy Award-nominated actor Will Smith and directed by Francis Lawrence, to its 2007 film line-up.
“We are delighted to work once again with our partners at Warner Bros. to release I Am Legend: The IMAX Experience. This action-packed holiday release is well-suited to IMAX, and we believe this event film, bolstered by the star power of Will Smith, will really draw audiences in,” Gelfond and Wechsler continued. “We also have several great prospects for our remaining 2007 film and our 2008 slate, and look forward to more exciting announcements in the near-term.”
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