DreamWorks left hoping for some holiday cheer after profits drop

GLENDALE -- Wallace and Gromit took care of the were-rabbit but the film's producers probably wish more film-goers bothered to watch.

Third quarter revenues for Glendale-based DreamWorks Animation SKG Inc. ending Sept. 30, totaled $87.1 million resulting in a net loss of about $656,000 or one cent per share, the company announced Thursday.

That pales in comparison to the same period in 2004 when the company posted revenues of $241.3 million and a net income of $20.3 million, or 26 cents per share.

"This quarter's results, driven largely by the strong performance of 'Madagascar,' demonstrate our continued ability to deliver highly successful [computer-generated] animated movies," said DreamWorks CEO Jeffrey Katzenberg in a conference call. "Madagascar has generated over $525 million in worldwide box office, making it our highest grossing non-sequel to date."

Not to be daunted by its disappointing third-quarter earnings, DreamWorks Animation, which has 1,100 employees, is expecting to rally during the holidays behind the home release of the exotic computer-animated hit "Madagascar."