DREAMWORKS - DREAMWORKS EXPERIENCING DOWNS AND UPS

DREAMWORKS EXPERIENCING DOWNS AND UPS

The roller-coaster business of feature animation -- in which profits soar during the months following a theatrical release, then plummet afterwards, then rise again when the movie is released overseas and the DVD is released at home, then drop once more before the next feature is released -- nabbed the attention of analysts Tuesday when DreamWorks Animation posted net income of $19.6 million for its recent quarter, down 48 percent from the comparable quarter a year ago. Nevertheless that was far better than analysts had expected, and the company's stock rose 3.2 percent in after-hours trading and 2.8 percent in early trading today (Wednesday). Revenue from foreign sales and the first weeks of DVD sales domestically proved to be higher than expected. In a conference call with analysts, DreamWorks Animation chief Jeffrey Katzenberg disclosed that the company had decided not to produce a sequel to Monsters vs Aliens , largely because the movie failed to perform as well as expected in some key markets overseas. "I'd like to tell you there's a perfectly rational, clear and easy answer as to why not, but there isn't," he said.

28/10/2009