Imax Corp. posted improved quarterly results, yieldingearnings of $34m, up from $31.3m in the prior year quarter and exceedinganalyst estimates.

The company has been hot of late, following news lastmonth that the second and third Matrix films, The Matrix Reloadedand The Matrix Revolutions, willbe released on Imax screens concurrent with their conventional releases - in thecase of Revolutions, day and date.

In March, Imax introduced a lower-cost theatre system,named MPX, designed for construction or retrofitting into existing facilities.The two announcements, combined with the advent of its proprietary DMR digitalremastering system that adapts conventional films to Imax format, illustratethe company's aim to create a new release window for motion pictures.

With Reloaded, four studios --Warner Bros, Universal, Fox and Disney -- will havereleased an Imax film in the past 12 months.

In an analyst conference, Imax co-chief executiveofficer Brad Wechsler said, "Day and date release will allow Imax films to capitaliseon the massive marketing campaigns of those films."

The company announced construction plans for six newcinemas in the quarter, including a three-cinema deal in India to be opened by2006. More significant, was the first contract for MPX system with US-based JackLoeks Theatres for a facility in Lansing, Michigan, a market that might nothave been able to support a standard Imax facility. In all, the company is ontrack to install between 18 to 20 cinemas in 2003.

Wechsler stressed that Imax was not in the distribution business. 'We make money by expanding the Imax network and selling and leasing additional systems. If we make money for studios there will be competition for the Imax slot and then we may be able to charge a toll, but that is further down the road.

He said the ideal scenario would see Imax be analogous with the ubiquitous Starbucks Coffee brand, creating a "premium" movie-going experience, with each studio releasing its event films day-and-date in an Imax cinema.