Future Imax CFO Sparacio named exec vp

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TORONTO -- Giant-screen exhibitor Imax Corp. on Thursday named Joseph Sparacio as its new executive vp finance, in advance of his becoming CFO in May.

The delay before Sparacio grabs the financial reporting reins is intended to give interim CEO Edward MacNeil time to finish sorting through recently uncovered accounting irregularities so Toronto-based Imax can file its 10-K annual report and get its company books in order.

Sparacio, who will be based in New York, replaces Frank Joyce, who resigned in August after Imax said it was the subject of separate informal accounting probes by the U.S. Securities and Exchange Commission and the Ontario Securities Commission.

That news followed Imax failing to find a buyer after putting itself up for sale.

Sparacio most recently was senior vp and CFO at iN Demand Llc., a provider of VOD, pay-per-view and HDTV programming. Before that, he worked at Loews Cineplex Entertainment Corp. and Ernst & Young, where he was a senior manager of audit.

Imax remains under investigation for its revenue recognition.

The company last week further delayed filing its 10-K and annual financial results after broadening an internal review into accounting errors over six years, and has not indicated when it will file its full-year 2006 earnings report.

Imax initially delayed its latest financial results March 16 to investigate $2.5 million in accounting errors from 2001-06.

Those accounting errors were uncovered by Imax executives and PricewaterhouseCoopers during the company's recent year-end audit and exposed certain costs that were capitalized when they should have been expensed as incurred, in addition to unrecorded branch-level interest taxes (HR 3/17).

Once Sparacio takes over as CFO, MacNeil will continue in a senior financial role based in the Toronto headquarters, the company said.
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