Friday, August 12, 2005

A Loss is Really a Victory.

posted by Rob at 11:36 AM

Nope. I'm not referring to this. I'm talking about DreamWorks Animation:
DreamWorks Animation SKG Inc on Thursday reported a $3.7 million net loss in its second quarter due to a large number of retail returns for DVDs of its films "Shrek 2" and "Shark Tale."

But the loss was smaller than analysts and the company predicted last month bolstered by sales of consumer products from its recent film "Madagascar" and from library titles. A tax gain also buoyed earnings by 2 cents.

Shares of DreamWorks were up 3 percent to $24.80 in after-hours trade on Thursday after closing at $24.11 on the New York Stock Exchange.

So no one wanted to buy their latest movies, and the government helps a bit, so reporting a loss is actually good news. Makes sense to me.


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