Friday, July 20, 2007

Update IMAX

Finally, IMAX filed its 2006 and first quarter 2007 results. The stock had been languishing despite posting record box office results due to strength from 300, Spider Man 3 and Harry Potter. With these financial uncertainties largely out of the way, IMAX appears poised to run. In early trading the stock gapped up some 9% to $4.80.

Below are some choice highlights. Heed special attention to the theater signings from the 1st and 2nd quarter of 2007. These are numbers important not only because they are some of IMAX's highest grossing revenue streams, but also because they expand IMAX's foot print i.e. the greater the number of theaters IMAX opens the greater the revenue from IMAX's digitally remastered movies. Essentially, the more theaters IMAX has the more cost effective it is for IMAX to convert Hollywood's blockbusters into the 70 mm format.

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