DreamWorks Animation

(DWA)

swung to a third-quarter profit, citing the strong performance of

Shrek 2

, and said it would delay the release of

Shrek 3

by six months to boost the movie's return.

The Glendale, Calif., company, which came public in a closely watched Oct. 27 initial public offering, earned $13.7 million, or 18 cents a share, in the latest quarter. That reverses the year-ago loss of $35.9 million, or 47 cents a share. All figures are pro forma, reflecting taxes that would have been paid had DreamWorks Animation been a taxable corporation in both periods.

Revenue surged to $241 million from $48 million a year earlier.

"Our results for the third quarter reflect the strong domestic and international theatrical performance of Shrek 2, as well as continuing revenue generated by our growing library of films," said CEO Jeffrey Katzenberg. "We are also thrilled with the results of our films in the fourth quarter, including the recent box office success of

Shark Tale

, which has earned over $300 million on a worldwide basis and is still being released in several international territories. In addition, initial

Shrek 2

video sales have set an all-time record, selling over 30 million units worldwide in just over four weeks."

DreamWorks said it would move its release of

Shrek 3

from November 2006 to May 2007.

"We believe there are more than a half a dozen strong release windows available annually for our films," Katzenberg said. "The sheer magnitude of the

Shrek

franchise has led us to conclude that a May release date -- with a DVD release around the holiday season -- will enable us to best maximize performance and increase profitability, thereby generating enhanced asset value and better returns for our shareholders."

On Wednesday, DreamWorks Animation rose 35 cents to $39.95.