The fourth dimension. No, Quebec’s D-Box Technologies (TSXV:DBO.A) hasn’t rewritten the rules of vectors and coordinate geometry. The physics D-Box is interested is that of motion. 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 as struggled to build a consistent revenue stream, but a recent string of successes may finally be putting the company on the map.
After a trial at a Toronto theater was deemed a win, Cineplex Entertainment decided recently to add 250 D-Box MFX seats in 10 theaters across Canada over the next 12 months. The number of titles supported for this technology has grown, to the point where some of the bigger releases will now open to it; on November 19th, three Cineplex theaters with D-Box motion systems will feature Harry Potter and the Deathly Hallows. On December 17th Disney’s Tron Legacy will have a similar opening. In US theaters, D-Box seats are normally installed in the first two rows and cost and add an extra five bucks to the cost of your ticket.
D-Box has yet to post a profit, but a shift in business strategy that has the company concentrating on theatrical releases has started to pay dividends; D-Box’s Q3 revenue of $1.8 million was a 98% increase over 2009’s Q3. D-Box now says it will now allocate the “vast majority of its human, financial and material resources to the commercial theater market”. Investors liked this news, shares of D-Box have been on the march since mid-October nearly doubling in this time frame. At press time, DBO.A was up 9% to $.71 cents on more than 1.2 million shares.
Perhaps as encouraging as the sale at home is the international inroads the company has made, D-Box is already in Asia, has made recent sales to the Netherlands, and has the Australian trade press cheering the arrival of the “fourth dimension” of their movie-going experience next year.