TORONTO (CP) _ Imax Corp. stock (TSX:IMX) tumbled 24 per cent Thursday to its lowest level in more than four years after a US$12-million loss in a quarter when the company installed no new movie systems and financial results missed analyst estimates by a wide margin.

In early afternoon trading, Imax shares fell to C$4.15 on the Toronto Stock Exchange, down $1.31 from their level on Wednesday ahead of the quarterly results. Thursday’s price was the lowest level since January 2002 and down from a 52-week high of $12.72.

Imax, which keeps its books in U.S. dollars, reported late Wednesday that the quarterly loss resulted from a combination of disappointing box-office returns and soaring legal costs, while installations of theatre systems dropped to zero. Box-office bomb "The Ant Bully" took much of the blame for the poor theatrical performance.

Imax CEO Richard Gelfond told investors in a conference call that the computer-generated movie raked in 14 per cent of its domestic box-office on Imax screens _ the company’s highest percentage ever.

Gelfond argued that could be a sign of how weak the Warner Bros. family film performed overall, rather than Imax’s drawing power. Overall, the movie made less than US$30 million during its entire run in all theatre formats. Imax revenue fell 38 per cent to $20.7 million from $33.4 million.

The Toronto-based company’s loss amounted to 30 cents per share. That compared with a net profit of $2.3 million or six cents per share in the third quarter of 2005.

Analysts had expected, on average, earnings of five cents per share and revenue of $38 million, according to Thomson Financial.

Gelfond said that slowing construction of new theatres has pushed back several new Imax installations. The company has 24 system contracts in backlog, scheduled to be installed sometime in 2007.

"While the slippage has remained a recurring and unpredictable part of our business, we do note that as these installations fall into subsequent periods, they should prove beneficial to our numbers," he said.

New contract signings have been less-than-anticipated, mostly due to a lack of real box-office hits on Imax screens this year.

"Excitement over the film slate is a strong incentive for clients to install quickly after signing, and we did not experience that on as large a scale in the second half of this year as in the previous period," Gelfond added.

He said next year’s releases, such as sure-fire hits like "Spider-Man 3" and "Harry Potter and the Order of the Phoenix", will hopefully boost signings and fast-track installations.

TORONTO, Sept. 26 /PRNewswire-FirstCall/ – IMAX Corporation (Nasdaq: IMAX; TSX: IMX) today announced the appointment of studio distribution executive, Peter Eiff, to General Manager – Europe, Middle East and Africa (EMEA). Initially based in Los Angeles, Mr. Eiff will relocate to Berlin, Germany, by the end of this year. Mr. Eiff will draw on his extensive film distribution background with Lucasfilm, Paramount, New Regency and Buena Vista International to help significantly accelerate the growth of IMAX as the preferred venue to enjoy Hollywood’s biggest blockbusters throughout Europe, the Middle East and Africa. There are currently 54 IMAX® theatres open in EMEA, and 22 additional IMAX theatres are scheduled to be open in the region by 2008.

In his new role, Mr. Eiff will focus on generating new business opportunities for IMAX and IMAX’s studio partners by growing the IMAX EMEA theatre network into a significant distribution channel for Hollywood event films. A key component of this effort will include driving sales of proprietary IMAX MPX® technology – theatre systems specifically designed to reduce the cost of entry into the IMAX theatre business for commercial multiplex exhibitors – and joint ventures with leading exhibitors throughout the region.

"Peter’s thorough understanding of the importance and value of premium distribution channels for branded event films made him the perfect choice to take on this crucial role within IMAX" said Larry O’ Reilly, IMAX’s Executive Vice President of Theatre Development. "Of course, being a European native who has spent the last 14 years in Hollywood will be extremely helpful as well."

Peter joins IMAX from International Film Finance Services, a consulting firm he founded that helped production companies optimize their financing supply chains. Previously, Mr. Eiff was head of television sales and director of worldwide distribution at Lucasfilm Ltd. Prior to joining Lucasfilm, he held executive roles at Paramount, New Regency Productions and Buena Vista International in which he focused on international sales and distribution.

"Given his extensive background with film distribution and structuring financial agreements, Peter will be a valuable addition to the IMAX team," said IMAX Co-CEOs and Co-Chairmen Richard L. Gelfond and Bradley J. Wechsler. "The European market holds much growth potential as IMAX begins to seek more joint venture relationships with exhibitors, and Peter’s skill set will be a great complement our efforts in the region."