Vancouver: After two lackluster quarters, Vancouver’s Mainframe Entertainment made good on its promises and delivered 21 half-hours of animated television in fiscal 1999’s third quarter (ended Dec. 31, 1998). As a result the company posted an impressive 66% increase in revenues.

For the third quarter, revenue was $12.1 million, up sharply from $7.3 million tallied for the same period in fiscal ’98. Net earnings for the third quarter were $900,000 ($0.06 per share) compared to a net loss of $2.1 million ($0.17 per share) for the same period last year.

The first 13 episodes of War Planets (Shadowraiders in Canada) and eight episodes of Beast Wars (Beasties in Canada) were delivered during the quarter. The 21 episodes matches the company’s output after nine months in 1998 when there were 16 episodes of ReBoot and five episodes of Beasties delivered to broadcasters.

The most recent quarter also reflects a $870,000 ($0.07 per share) write-down related to Mainframe’s investment in software for motion-simulation rides such as Ridefilms. According to Mainframe, this charge was taken as a result of IMAX Corporation’s recent announcement to significantly reduce the investment in its motion-simulation assets.

On the other hand, while paring back on Ridefilm, Imax in the fourth quarter has invested $16 million in Mainframe common stock and convertible senior debt to coproduce three 3D computer-generated animated films for release to IMAX 3D theaters and other markets.

The first 3D animated film, already in development, is Gulliver’s Travels, which is scheduled for release by summer 2001. The Pied Piper and Pandora’s Box are the other two titles.

Mainframe’s revenue for the year to date was $12.4 million compared to $11.9 million for the same period last year. The net loss for the for nine months of fiscal ’99, meanwhile, was $8.9 million ($0.65 per share), compared to a net loss of $7.5 million ($0.65 per share) for the same period last year.

ReBoot begins airing daily on Cartoon Network in April and Beast Wars, now entering its fourth season of production, begins airing on Fox Family Channel this fall. New series Weird-Ohs also debuts this fall.

And Mainframe will begin earning new revenues from the new line of Shadowraiders merchandise that hits toy stores next month.