In announcing its second quarter results, DreamWorks Animation SKG Inc. announced revenue totaled $35.4 million resulting in a net loss of $3.7 million or $.04 per share on a fully diluted basis. This compares to revenue of $300.3 million and a net income of $146.1 million, or $1.89 per diluted share for the same period in 2004. The company ended the period with $430 million of cash, cash equivalents and short-term investments.
In the quarter the company recognized a tax benefit, which increased net income by approximately $2 million or approximately $.02 per share on a fully diluted basis. This was primarily driven by a decrease in the valuation allowance associated with its deferred tax assets.
"Results for the quarter are slightly ahead of where we said they would be on our July 11 conference call driven by the strength of MADAGASCAR consumer products as well as our library," said Jeffrey Katzenberg, DreamWorks Animation's ceo. "To date, MADAGASCAR has performed very well achieving more than $432 million in worldwide box office, reaching over $242 million internationally."
"While we continue to analyze changing trends in the home video market, the performance of our 2004 releases is strong. SHREK 2 remains one of the best selling home video releases of all time and SHARK TALE is the second highest selling DVD of 2005. We are looking forward to MADAGASCAR's release in the home video market on Nov. 15, 2005," continued Katzenberg.
On a full year basis, the company reaffirmed its expectation for EPS of approximately $0.80 to $0.90 per share for 2005.
The company's next film WALLACE & GROMIT: CURSE OF THE WERE-RABBIT is scheduled for release on Oct. 7, 2005.
"These characters have a strong fan base overseas and the film allows us to deliver a unique and inventive form of animation to audiences this fall. While it is certainly different from a CG animated film, we think it is sure to be a special movie-going experience for the entire family," commented Katzenberg.
DreamWorks Animation (www.dreamworksanimation.com) is principally devoted to developing and producing computer generated, or CG, animated feature films.