LOS ANGELES – DreamWorks Animation SKG Inc (DWA) Thursday reported a net loss in its second quarter due to a large number of retail returns for DVDs of "Shrek 2 (search)".
The company posted a net loss of $3.7 million, or 4 cents per share, compared with a profit of $146.1 million or $1.89 per share a year earlier. DreamWorks Animation became a public company in October of 2004.
Revenue fell to $35.4 million from $300.3 million in the year-earlier quarter.
Analysts had expected a loss of 7 cents per share and revenue of $24.5 million for the quarter, according to Reuters Estimates.
On a full year basis, the company reaffirmed its expectation for earnings per share of about 80 cents to 90 cents per share for 2005.
Last month, Glendale, Calif.-based DreamWorks said it would report a loss 7 cents to 9 cents per share for its second quarter, compared with an earlier forecast of no profit for the second quarter.
At that time it also adjusted its previous fiscal year forecast to 80 cents to 90 cents a share from $1 to $1.25 per share.
It said it had overestimated sales for its "Shrek 2" DVD and was receiving more returns from retailers than expected.
In a statement Thursday, DreamWorks Chief Executive Jeffrey Katzenberg (search) said that the expected losses were somewhat mitigated by the box office success of "Madagascar" consumer products and revenue from the company's film library. "Madagascar" has grossed $432 million in worldwide box office.
Shares of DreamWorks rose 5.8 percent to $25.50 in after-hours trade, after closing at $24.11 on the New York Stock Exchange (search).
Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox