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Double Feature at IMAX

Rick Aristotle Munarriz
October 28, 2010

Life is good at the local multiplex if you're a premium exhibitor.

Shares of IMAX (Nasdaq: IMAX  ) opened higher this morning, after the Toronto-based company behind gargantuan screens and sense-awakening projection and sound systems delivered a healthy quarter.

Revenue climbed 17% to $51.1 million, and that was with fewer installations of the sales-type leases that the company books as immediate revenue. Many of the screens going up these days are part of joint-venture agreements with exhibitors. These arrangements may not have the same kind of top-line pop initially, but it does allow IMAX to participate more actively in the box office receipts and related concession sales.

Reported earnings grew fivefold to $0.10 a share, but even adjusted earnings more than doubled. 

Clearly there's a healthy appetite for consumers to pay up a few bucks more for premium screenings, and this bodes well for IMAX, as well as sound specialist Dolby (NYSE: DLB  ) and 3-D licensing leader RealD (NYSE: RLD