This is a partial transcript from "Your World with Neil Cavuto," October 28, 2004, that was edited for clarity.

STUART VARNEY, GUEST HOST: Joining me now is the man heading up Dreamworks Animation (search), the chairman, Roger Enrico. Welcome, Roger.

ROGER ENRICO, DREAMWORKS ANIMATION CHAIRMAN (DWA): Stuart, good to see you.

VARNEY: You made a lot of money. You've got a big smile.

ENRICO: Well, you know, it is a wonderful day for all the people who have worked at Dreamworks for 10 years.

VARNEY: Now you've got to show that you can make this a consistently successful film company.

ENRICO: Well, absolutely. I mean, our job is to deliver great films to the audience. And this category of computer-generated animation has been enormously successful, and it's very, very popular, because it is just dazzling, and the stories are wonderful.

VARNEY: I noticed that "Shrek" (search) and "Shark Tale" (search) — they're both computer animation. OK?

ENRICO: That's right.

VARNEY: But you had a couple of failures recently. I don't want to dwell on them, but they were "Sinbad: Legend of the Seven Seas," "Road to El Dorado." Now, they were hand drawn.

ENRICO: That's right.

VARNEY: Is that a technology of the past? You're not touching it again?

ENRICO: Well, for us, we're going to be completely computer-generated animation. There are some people still doing hand drawn — "SpongeBob," for example, is hand drawn, and that is probably going to be a very successful movie. But for us, the future is in computer-generated animation. We think it allows us to tell much broader stories, attract much broader audiences, and immerse people in the technology.

VARNEY: Really? Now, wait a second. Surely it's geared towards children.

ENRICO: It is.

VARNEY: Animation has taken over the children's market.

ENRICO: It is geared towards children, or toward the family audience, the parents with their children.

But here's an interesting fact, Stuart. At the recent release of "Shark Tale," the first weekend 30 percent of our audience were teens and young adults. So these movies have gone beyond the traditional child audience, as hand drawn have not done.

VARNEY: OK, so you think it's going to keep its market share in the overall film business? That is what you're committed to, and you think this is where it's at?

ENRICO: There have been nine computer-generated movies produced by Pixar, which is a great company and a great performer, and by Dreamworks in the last eight and a half years. All nine of those movies — and Pixar is about to have the 10th in a few weeks here with "The Incredibles" — have been hugely successful.

VARNEY: I have to ask you, you used to run Pepsi, very successfully, OK, here in New York, as I understand it.

ENRICO: That's correct.

VARNEY: Now you're out in Hollywood running an animation studio. How come Hollywood is so relentlessly leftist?

ENRICO: Well, you know, first off, I live in Dallas, not in Hollywood.

VARNEY: But you're dealing with Hollywood.

ENRICO: I commute to Hollywood and I don't run the studio. Jeffrey Katzenberg runs the studio.

VARNEY: But OK, but you know what I mean. You know what I mean. You're dealing with it.

ENRICO: I don't even know how leftist or rightist it may be. We are talking about animated movies.

VARNEY: OK, all right, good dodge. Congratulations on your IPO.

ENRICO: Thank you, Stuart.

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