Good news for shareholders of D-Box Technologies (TSX:DBO) today; the company announced it will graduate from the junior venture exchange to the TSX tomorrow.
Quebec’s D-Box makes integrated motion systems built into high tech chairs that are synchronized with the action and sound on a movie screen. Bouncing back between the home theater market and the commercial, D-box has struggled to build a consistent revenue stream from its technologies.
As late as December 2008, the prospects for the Longueuil company seemed tenuous at best. Shares of D-Box hit a low of .09 cents around the time it announced Q2 2009 revenues had dipped, the company lost nearly $1.5 million in that quarter.
But things began to turn around for the company after a sharpening of focus to concentrate solely on the commercial side of its business. D-Box says it now dedicates the “…vast majority of its human, financial and material resources to the commercial theatre market…”
Last year, after a trial at a Toronto theater was deemed a win, Cineplex Entertainment decided to add 250 D-Box MFX seats in ten theatres across Canada, over a period of twelve months. Since that time D-Box has made sales to Germany, The Netherlands and parts of Asia, and partnered with giants such as Sony and Warner Brothers. The Company has snagged twenty-four feature presentations April, 2009, including thirteen that were ranked number one at the box office. In US theaters, D-Box seats are normally installed in the first two rows and add an extra five dollars to the cost of a ticket.
D-Box is still struggling to break even, but a look at their financials shows the underlying business is changing rapidly. In their most recently reported quarter, Q3 2011, D-Box reported that revenues generated by commercial theatres was $1,058,890 compared to just $123,308 for the same period of fiscal 2010.
Today, In its last day of trading on the TSX Venture Exchange, shares of D-Box were up nearly 4% to $.55 cents.