/ 6 May 2005

Pixar flexes muscles with strong DVD sales

Pixar Animation Studios more than tripled its earnings in the first quarter on strong DVD sales of its Oscar-winning film The Incredibles. The computer animation company reported net income of $81,9-million, or 67 cents a share in the quarter ended April 2, compared to $26,7-million, or 23 cents a share in the same period last year.

The earnings per share also reflect the results of a 2-for-1 stock split, which took effect April 19.

Analysts surveyed by Thomson Financial had expected earnings of 47% a share.

Revenue also tripled to $161-million compared to $53,9-million in the first quarter of 2004.

”We’re off to a terrific start with The Incredibles shaping up to be the best selling DVD of 2005,” Pixar Chief Executive Steve Jobs said in a statement.

The Emeryville-based company is finishing production of its next animated film, Cars, which will be released by Disney next year.

Disney will also release a 10th anniversary edition of Toy Story later this year. The movie was Pixar’s first film and the first feature-length computer-animated movie. – Sapa-AP