Operating Losses

From Seeking Alpha:

DreamWorks Incurs Operating Losses Amidst Restructuring Plan

In the first quarter, [DreamWorks Animation] recorded revenue of $166.5 million, ~13% higher than the 2014 comparable period. Revenues increased across all operating segments: feature films, television series and specials, consumer products, and new media.

Despite growing its top-line, DreamWorks realized an operating loss of $3.4 million and posted an adjusted net loss of $21.5 million in the first quarter. These adjusted results exclude a $31.9 million charge it took for the studio's restructuring plan. ...

CEO Jeffrey Katzenberg is confident in the company's future and referenced their 2015 release Home as an indicator of its turnaround. Home is the firm's only planned release for 2015 but still falls short of blockbusters from competitors. ... As of June 3, Home has a worldwide box office total of ~$364 million. The animated feature was the highest grossing film at domestic box offices on its opening weekend in late March. ...

DreamWorks Animation has been diversifying over the past couple of years, building amusement park attractions, and creating a library of television shows at a faster pace than any animation studio this side of early Hanna-Barbera. They've also streamlined parts of production and plunged more heavily into merchandising.

Whether pivoting away from a reliance on theatrical features is being done with sufficient alacrity? I guess we will find out in the fullness of time if the newer corporate strategy works or not. But it's a positive thing that the company is spreading out into fresh areas of business. Walt did it in the 1950s. Jeffrey is doing it now.