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Poor Q4 for DreamWorks Animation

DreamWorks Animation SKG Inc. badly missed analyst expectations for the fourth-quarter and full year as the company took a large write-down on its fall film “Rise of the Guardians.” For the quarter, the Glendale animation feature film studio reported a net loss of $82.7 million (98 cents a share) compared with net revenue of $24.3 million (29 cents) in the same period a year earlier. Revenue rose 20 percent to of $265 million. Analysts expected a loss of 6 cents a share, according to Thomson Financial Network. For the full fiscal year, DreamWorks Animation reported a net loss of $36.4 million (43 cents a share) compared with net income of $86.8 million ($1.02) in the same period a year earlier. Revenue rose 6.2 percent to $750 million. The fourth quarter and fiscal year results were impacted by a $87 million write down on the costs of “Rise of the Guardians” and charges of $54 million connected with the studio’s decision to delay the release of “Me & My Shadow.” “While ‘Rise of the Guardians’ did not achieve the level of box office success that we have come to expect from a DreamWorks Animation film, we have made several changes to our future slate that we believe will position us well for the next two years,” said Chief Executive Jeffrey Katzenberg in a prepared statement. Shares closed down 21 cents or 1.25 percent to $16.61 on the Nasdaq.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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