DreamWorks Animation SKG Inc. reported third quarter net income of $10.5 million (10 cents per share) compared with a loss of $656,000 (1 cent) from the same period a year earlier.

Wall Street analysts were expecting losses of 2 cents, according to Thomson Financial. Sales for the Glendale-based studio also beat estimates, declining 57 percent to $55.6 million. The company had warned investors that it would have no major revenue drivers in the third quarter. However, home-video sales of "Madagascar" helped the company, contributing $24.1 million, followed by "Wallace and Gromit: Curse of the Were-Rabbit," which generated revenue of about $17.2 million.

Shares in DreamWorks were up 85 cents during trading but continued to climb another 30 cents after hours to $26.75.

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