DreamWorks swings to 4Q loss on charges |
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Tue, 27 Feb 2007 22:43
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GLENDALE, Calif. (AP) - DreamWorks Animation SKG Inc., the studio behind animated movies such as 'Shrek' and 'Madagascar,' said Tuesday it swung to a fourth-quarter loss on costs to write off 'Flushed Away,' which performed poorly at the box office.The company posted a loss of $21.3 million, or 20 cents per share, compared with year-ago earnings of $63.2 million, or 61 cents per share, which included a tax benefit and strong performance from the studio's 'Madagascar' DVD, which was initially released into the home video market in the 2005 quarter.DreamWorks said the recent quarter was strapped with a charge of 80 cents per share related to the partial write-off of film costs for 'Flushed Away.' Chief Executive Jeffrey Katzenberg said the film failed to meet financial expectations.Revenue grew 18 percent to $204.3 million from $172.9 million in the prior-year period, with about half of sales driven by the release of 'Over the Hedge' into the home video market. However, costs associated with sales -- including the write-off -- more than doubled at the same time to $219.9 million, offsetting revenue growth.Analysts polled by Thomson Financial forecast a loss of 42 cents per share on sales of $158.9 million.DreamWorks shares fell 84 cents, or 3 percent, to close at $26.80 on the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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