Bolstered by box office and DVD sales, Dream Works Animation SKG Inc. gets back in the black.
The Glendale-based animation movie maker reported second quarter net income of $13.7 million (13 cents per share), compared with a loss of $3.7 million (4 cents) for the same period last year. Revenue for the company rose 111 percent to $74.9 million.
Better than expected revenue from video sales of "Madagascar," as well as continued strong video sales from older titles, including "Shark Tales" and "Wallace & Gromit: The Curse of the Were-Rabbit," helped the company pull a nice profit.
During the quarter, "Madagascar" contributed $37.9 million and since the film debuted on video during the fourth quarter of 2005, nearly 19 million units have been shipped. While the company's current release, "Over the Hedge," which opened May 19, has brought in $153 million domestically along with another $125 million at overseas box offices, DreamWorks says it still has not yet recouped its investment. Still, "Over the Hedge" did contribute $10.7 million of revenue during the quarter.
"Sharks Tale" also chipped in, the company said, with about $9.6 million in international pay television revenue and "Wallace & Gromit: The Curse of the Were-Rabbit" contributed another $3.4 million in home video revenue.
"Over The Hedge" is expected to contribute to the year's final quarter, the company said, as the DVD gets released October 17. The company's next major film, "Flushed Away" is scheduled to debut in November. Shares of DreamWorks Animation fell 3 percent to $20.30 in Thursday trading on the New York Stock Exchange.
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