TORONTO, June 7 /CNW/ - 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 2002-2006, it had formed
preliminary accounting judgments under U.S. Generally Accepted Accounting
Principles as to the overall application of U.S. GAAP in connection with
revenue recognition, and is now in the process of drafting its policy and
consulting with its Audit Committee, Board of Directors and auditors as it
relates to the recognition of revenue on typical theatre system arrangements
with its customers. The Company reiterated that it will consult with the U.S.
Securities & Exchange Commission ("SEC") and the OSC before completing and
filing its financial statements.
On May 24, 2007, the Company announced certain unaudited financial
information regarding the Company's operations and financial condition. On
May 30, 2007, the Company filed an 8-K stating that it was extending to
June 30, 2007 the date by which, under the amended indenture to its 9 5/8%
senior notes due in 2010 ("Indenture"), the failure by the Company to comply
with the reporting covenant under the Indenture shall not constitute a Default
or be the basis for an Event of Default (as those terms are defined in the
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 and
May 24, 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 June 18, 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.
For further information:
For further information: Media: IMAX Corporation, New York, Sarah
Gormley, (212) 821-0155, firstname.lastname@example.org; Business Media: Sloane & Company,
New York, Whit Clay, (212) 446-1864, email@example.com; Investors: Integrated
Corporate Relations, Amanda Mullin, (203) 682-8243, Amanda.Mullin@icrinc.com