DreamWorks Animation SKG Inc. on Thursday posted a third-quarter loss as tax expenses and low U.S. box office sales for its "Wallace & Gromit" animated film led to a nearly 64 percent drop in revenues from the year-ago period.
The Glendale-based digital animation film company reported a third-quarter net loss of $656,000 (1 cent per share), compared with income of $20.3 million (26 cents) for the like period a year earlier. Revenue fell 63.9 percent to $87.1 million from $241.3 million in the year-ago period.
Analysts had expected third-quarter earnings of 1 cent per share on revenue of $51 million.
Third-quarter results included a tax charge of 8 cents per share, as well as a 4-cent-per-share charge for the partial write off of film inventory for "Wallace & Gromit: The Curse of the Were-Rabbit." While the movie has made $160 million in worldwide box office to date led by a strong fan base overseas, the movie has yet to perform well in the U.S., DreamWorks said in a statement.
The company said the most recent quarter's results were driven mainly by receipts from its film "Madagascar," which amassed nearly $525 million worldwide, adding nearly $64.6 million to DreamWorks' revenue. "Shark Tale" contributed $10.3 million in revenue driven primarily from pay television licensing, while "Shrek 2" produced $2.6 million in the quarter resulting from consumer products sales.
"Madagascar," which will be released domestically on video and DVD on Nov. 16, also drove second-quarter results.
DreamWorks expects its full-year earnings to fall at the low end of previous guidance of 80 cents to 90 cents per share. Analysts, on average, had forecast current-year profit of 85 cents per share.
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