SportsBlast, the animation development company founded by voice-actor Nancy Cartwright (THE SIMPSONS, RUGRATS), has chosen Canadian-based animation house Bardel Entertainment as its new animation partner for THE KELLYS, the animated Web series about a family of professional stock car racers. Bardel’s production credits include the DreamWorks films JOSEPH: KING OF DREAMS and THE ROAD TO EL DORADO, as well as work for Columbia TriStar, Disney and Fox. Bardel will provide all the visual elements for THE KELLYS’ second season, which begins in February 2002.

Pixar Animation Studios recently announced financial results for its fourth quarter and fiscal year ending December 29, 2001. The studio’s Oscar-nominated film MONSTERS, INC. helped Pixar more than double the previous quarter’s profits. Fourth quarter profits were $13 million, or $0.25 per share up from the $6.2 million or 12 cents per share earned for the third quarter of 2001, but down from $35.2 million, or $0.71 per share for the same period in 2000. Revenue driven primarily by the $234.2 million domestic box office receipts from MONSTERS, INC.

Paris headquartered animation production and distribution company Millimages, is expanding into the factual programming business with the acquisition of a 50.1% stake in French documentary producer, Gedeon Programmes. Millimages will acquire the majority interest in exchange for Euro 1.37M (US$1.19M) in cash plus stock. In addition, Gedeon Programmes chairman Stephane Milliére will assume a position on Millimages’ board. Millimages chairman Roch Lener stated that the move was made as part of Millimages’ overall strategy for growth and development.

French animation studio Xilam Animation has launched its first initial public offering (IPO) on Paris’ Second Market (Marché d’Euronext). The producers of the series OGGY AND THE COCKROACHES, SPACE GOOFS and THE NEW ADVENTURES OF LUCKY LUKE raised 15 million Euros through this IPO. The company floated 1 million shares representing 27.03% of its capital. Shares rolled out at 15 Euro. The companies’ founder and CEO Marc du Pontavice will retain the remaining 66.7% of the capital.

Troubled children’s television producer Cinar Corporation avoided criminal prosecution from tax-fraud charges brought against the company by the Royal Canadian Mounted Police (RCMP). After completing an analysis of the evidence presented, the Crown prosecutors' office claimed an investigation could not go forth. The charges stemmed from allegations back in 1999 when Cinar was accused of illegally obtaining Canadian tax credits by forging Canadian names on scripts written by U.S. citizens.

SD Entertainment, a content creator and property builder, has formed two new divisions, interactive and licensing. The divisions will be headed by Michele Martell, SD’s senior vice president and general counsel. In its first licensing venture, SD will become the domestic master toy licensing agent and television representative for MAKE WAY FOR NODDY. SD has produced 100 episodes of the new CGI animated series, which is an update of the Emmy Award-winning preschool series, NODDY, based on characters created by author Enid Blyton.

Led by strong sales for its HARRY POTTER game franchise, Redwood City, California-based Electronic Arts (EA) reported a net profit of $132.3 million, or 92 cents per share, compared with net earnings of $88 million, or 63 cents per share, in the year-earlier period. Excluding goodwill and other charges, the company reported earnings of $147.1 million, or $1.03 per share. Revenue in the quarter was $832.9 million, up from $640.3 million a year earlier.

The innovative studio that brought the synthespians of FINAL FANTASY to life, is planning to close up shop. Pressure from parent company Square Co., Ltd. of Tokyo is forcing Honolulu-based Square USA into closure, if they cannot find investors between now and March 31, 2002. Square Co. ceased funding of the studio in September, and although Square USA attempted to find partners in major U.S. studios, they have not been able to procure outside funding. Although the studio hopes an investor will appear in the 11th hour, a March 31st shut down seems inevitable.

Animation producer Millimages is expanding into German territory with the acquisition of 51% of the Hamburg-based animation company, Toons ‘n’ Tales. This latest acquisition follows the company’s announcements in 2001 of the launch of Millimages USA, headed by Dorian Langdon, and the international distribution center, Millimages London. Toons ‘n’ Tales managing director and co-founder Sunita Struck, will continue to oversee the company in partnership with Millimages.

The Hewlett-Packard Company (HP) and DreamWorks SKG have entered into a three-year, multi-million dollar technology strategic alliance aimed at revolutionizing animation production. The alliance designates HP as DreamWorks' sole "preferred technology provider" for core technology purchases meaning HP will provide a broad range of products, services and integration expertise to create a new DreamWorks production facility at the Glendale campus.