IMAX Corporation (ticker: IMAX, exchange: NASDAQ Global Market (.O))
News Release -
IMAX provides status report in connection with delayed filing
TORONTO, June 21 /PRNewswire-FirstCall/ - IMAX Corporation (NASDAQ:IMAX;
TSX:IMX) today provided a status update pursuant to the alternative
information guidelines of the Ontario Securities Commission ("OSC"). These
guidelines contemplate that the Company will normally provide bi-weekly
updates on its affairs until such time as the Company is current with its
filing obligations under applicable Canadian provincial securities laws.
The Company reported that, with regard to its accounting review in
connection with revenue recognition for the years 2002 through 2006, it has
submitted a response to comments received from the staff of the U.S.
Securities and Exchange Commission ("SEC") which included a revised policy
with regard to revenue recognition for theatre systems. The revised policy
treats the theatre system equipment (including the projection system, sound
system and screen) and certain other services (including supervision of
installation and use of the trademark) as a single unit of accounting and has
the effect of shifting a portion of systems revenue between periods during the
years 2002 through 2006. In the majority of cases, the timing of revenue
recognition is expected to shift by 90-180 days. The Company will provide
significantly more detail with regard to this revised policy, which has also
been provided to the OSC, when it files its 2006 Annual Report on Form 10-K.
On June 19, 2007, the Ontario Superior Court of Justice granted the
Company's application to call its Annual General Meeting between June 30, 2007
and September 30, 2007.
Except as to the above, and those matters described in the Company's press
releases of April 3, 2007, April 5, 2007, April 9, 2007, April 12, 2007, April
13, 2007, April 16, 2007, April 26, 2007, May 10, 2007, May 18, 2007, May 24,
2007 and June 7, 2007, there have been no material developments in the matters
reported in the Company's press release "IMAX to Delay Filing of 2006 10-K"
dated March 29, 2007. Management continues to be subject to a cease trade
order imposed by Canadian provincial securities regulators.
The Company previously announced that it would delay the filing of its
annual report on Form 10-K for fiscal 2006 and its quarterly report on Form
10-Q for the quarter ended March 31, 2007 due to the discovery of certain
accounting errors and has since broadened its accounting review to include
certain other accounting matters based on comments received by the Company
from the SEC and OSC. The Company is currently working diligently and devoting
necessary resources to complete the report and filing as soon as practicable.
The statements set forth in this press release are preliminary, reflect
information currently known to the Company and are subject to change as a
result of the accounting review and restatement process, subsequent events and
the completion of the financial statements by management and the audit of the
financial statements by the Company's independent auditors,
The Company's next bi-weekly status update is expected to be released
during the week of July 2, 2007.
About IMAX Corporation
IMAX Corporation is one of the world's leading entertainment technology
companies, specializing in digital and film-based motion picture technologies.
The worldwide IMAX(R) network is among the most important and successful
theatrical distribution platforms for major event Hollywood films around the
globe, with IMAX theatres delivering the world's best cinematic presentations
using proprietary IMAX, IMAX(R) 3D, and IMAX DMR(R) technology. IMAX DMR is
the Company's groundbreaking digital remastering technology that allows it to
digitally transform virtually any conventional motion picture into the
unparalleled image and sound quality of The IMAX Experience(R). IMAX's
renowned projectors display crystal-clear images on the world's biggest
screens, and the IMAX brand is recognized throughout the world for
extraordinary and immersive entertainment experiences for consumers. As of
September 30, 2006, there were 280 IMAX theatres operating in 40 countries.
IMAX(R), IMAX(R) 3D, IMAX DMR(R), IMAX MPX(R) and The IMAX Experience(R)
are trademarks of IMAX Corporation. More information on the Company can be
found at www.imax.com.
This press release contains forward looking statements that are based on
management assumptions and existing information and involve certain risks and
uncertainties which could cause actual results to differ materially from
future results expressed or implied by such forward looking statements.
Important factors that could affect these statements include the outcome of
the accounting review, discussions with the SEC and OSC, and related matters
discussed in this press release, the timing of theatre system deliveries, the
mix of theatre systems shipped, the timing of the recognition of revenues and
expenses on film production and distribution agreements, the performance of
films, the viability of new businesses and products, risks arising from
potential material weaknesses in internal control over financial reporting,
the extent and impact of the restatement of our financial statements, the
outcome of the appeal of the NASDAQ Staff Determination letters and
fluctuations in foreign currency and in the large format and general
commercial exhibition market. These factors and other risks and uncertainties
are discussed in the Company's Annual Report on Form 10-K for the year ended
December 31, 2005.
SOURCE IMAX Corporation
CONTACT: Media: IMAX Corporation, New York, Sarah Gormley, (212)
821-0155, email@example.com; Business Media: Sloane & Company, New York, Whit
Clay, (212) 446-1864, firstname.lastname@example.org; Investors: Integrated Corporate
Relations, Amanda Mullin, (203) 682-8243, Amanda.Mullin@icrinc.com