Friday, August 8, 2008

Picture Should Sharpen For IMAX

The popularity of IMAX's wide-screen version of hit movies like The Dark Knight hasn't yet enabled the company to shift the profit needle out of the red.
The large-format cinema company posted a wider loss in its second quarter on Thursday, as it continued to invest in its transition to digital technology.

Investors were disappointed in the worse-than-expected results, having hoped IMAX (nasdaq: IMAX - news - people ) would reduce its loss. Its shares fell 4.2%, or 33 cents, to close at $7.50.

Soleil Securities Group analyst Marla S. Backer noted that 2008 was a "transitional period" for IMAX that did not illustrate the company's potential for 2009 and 2010 as it rolled out its digital footprint.

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