DreamWorks Revenue Strong

The animation outfit swings to a profit.
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Shrek

producer

DreamWorks Animation

(DWA)

reported improved DVD sales when it announced second-quarter results late Thursday.

The Glendale, Calif., studio said it earned $13.7 million, or 13 cents per share, for the quarter ended June 30. That compares to the year-ago loss of $3.7 million, or 4 cents a share. Revenue rose to $74.9 million from $35.4 million a year earlier.

Analysts polled by Thomson Financial were looking for DreamWorks Animation to make 2 cents per share on $52.6 million in revenue.

"The second quarter's results were primarily driven by the availability of

Madagascar

in the domestic pay television market and its performance in the worldwide home video market," said Chief Executive Jeffrey Katzenberg. "Last summer,

Madagascar

was our most successful theatrical release to date for an original film and has been one of the top selling domestic home video titles over the past eight months." A sequel of that film is planned for 2008.

Over the Hedge

, released on May 19, has made $153 million in domestic box office to date, making it one of the top seven domestic films of 2006.

"

Over the Hedge

has achieved over $278 million in worldwide box office to date with several major territories still to come," said CFO Kris Leslie. "As indicated last quarter, we do not expect

Over the Hedge

to contribute any significant revenue to the company until later in the year because of the upfront marketing and distribution costs associated with its theatrical release."

Looking ahead, the company reiterated its expectation that without a new release in either the theatrical or home video market it is not likely to have any significant drivers of revenues or profits in the third quarter of 2006. Analysts will be looking for the animation house to earn a penny a share on $53.9 million in revenue then.

DreamWorks Animation shares lost 3% on Thursday to close at $20.28.