In the quarter which ended on March 31, 2007, Dreamworks Animation, Inc (DWA) has reported their financials in a press release.
The company said that their total revenue increased to $93.7 million net income for the quarter, which compares favorably with last years $60.1 million.
On a fully diluted basis, the company came in at $0.15 per share on net income of $15.4 million. Last year during the same quarter they had finished at $0.12 per share on a fully diluted basis, with net income of $12.3 million.
"In what was a relatively quiet quarter, our library of titles continued to perform well especially in the home video market, with 'Over the Hedge' performing even better than we had expected," commented Jeffrey Katzenberg, DreamWorks Animation's CEO. "This is an exciting time for all of us at DreamWorks Animation. With two strong films set to be released in 2007, we are all hopeful that this is the start of a great year for our company and its shareholders."
For the rest of the year the company confirms that it will be almost completely dependent upon the performance of "Shrek the Third," set for release on May 18, 2007.
They do have another release scheduled for the fall, "Bee Movie," but they don't expect to generate any meaningful revenue from it, saying that the distributor probably won't recoup its distribution and marketing costs.
The company has been struggling tremendously for quite a long time now, and with "Shrek the Third" is should do pretty good. But I don't see why they should make another movie that they already say won't make any money. Why did they make it in the first place then? This has been one of Dreamworks continuing problems.
One good sign for shareholders is that they do have a share repurchasing plan in place that has resulted in buying back 1.2 million shares in the first quarter for $35 million, and has been authorized by their board to repurchase another $115 million throught August 31, 2008.
While this should be a good year for Dreamworks, I am still a little disappointed that they create stuff that from the outset won't make money. To me they still lack some of the discipline needed to be a great media company. It seems they have too many creatives running the show without regard for fiscal responsibility.
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