IMAX Looks to Cost Reductions to Counter Sagging Revenue and Profit

IMAX (NYSE: IMAX) has become a key player in the movie-theater industry, with its landmark big-screen experience offering viewers a superior way to see feature films. Yet the company has gone through some tough times lately, in part because of Hollywood's recent failure to keep box-office figures growing more sharply. IMAX's recent layoffs only added fuel to the fire among those who are skeptical about the company's future prospects.

Coming into Wednesday's second-quarter financial report, IMAX investors were prepared for declines on the top and bottom line for the theater company. IMAX's results were mixed, with weaker revenue than expected but slightly better adjusted net income, and the company did its best to emphasize the longer-term strategies it has adopted to try to make itself more profitable and successful. Let's look more closely at IMAX and what its latest results say about the business.

An IMAX theater under construction. Image source: IMAX.

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Source: Fool.com