IMAX Corp.'s 9 5/8% '10 bonds dropped 10 points before rebounding six points to 89 last week. The drop came after the company reported a $12 million net loss in the third quarter compared with a $2.3 million net loss in the same period last year. It incurred the loss mainly because it did not install any theater systems in the third quarter. The results were also affected by the disappointing performance of The Ant Bully, an IMAX 3-D animated movie, which opened in late July.
The company said in a release it expects to install between five and eight theater systems during the fourth quarter. It said it had been affected by unusually high delays in installations. Its clients have had slower than expected theater construction and delays in the approval of permits, according to a release. Six systems that were originally expected to be installed in the fourth quarter of 2006 are now expected to be installed in 2007.
IMAX is seeking to buy or merge with another company. It said it has lowered its asking price after failing to find a buyer at terms initially sought by its board of directors. A spokeswoman did not return calls.