DreamWorks Animation posts stronger than expected third quarter earnings and, possibly in an effort to save money through outsourcing, the company has entered into a strategic engineering partnership with Indian company Infosys, a leader in technology, consulting and next generation services, to engineer new solutions.
DreamWorks needs to find ways to improve performance since it stock has tumbled 40% since the same period last year. But its third quarter earnings did get a boost from the success of How to Train Your Dragon 2.
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Those earnings beat expectations of only 5 cents per share. DreamWorks Animations reported improved net income of $11.9 million, or 14 cents per share, compared with a profit of $10.1 million, or 12 cents per share, in the same quarter last year. The Company reported total revenue of $180.9 million, compared to $154.5 million for the same period in 2013.
“The third quarter of 2014 was strong for DreamWorks Animation, with both quarterly revenue and earnings per share up 17% in a year-over-year comparison, ” commented Jeffrey Katzenberg, Chief Executive Officer of DreamWorks Animation. “Driving the Company’s third quarter results is the blockbuster performance of How to Train Your Dragon 2, which has reached over $615 million at the worldwide box office to become the highest-grossing animated film of the year.”
Meanwhile Infosys and DreamWorks have declared their intent to work together to further develop DreamWorks’ technologies in order to bring them to wider use. Infosys will deploy its global talent pool available across cloud, big data, Java and open source capabilities to develop next generation solutions based on the DreamWorks technology.
Jeffrey Katzenberg said, “Infosys is a world leader in enterprise solutions and can deliver engineering talent at a massive scale to help us develop our technology for wider use.”
Dr. Vishal Sikka, Chief Executive Officer and Managing Director of Infosys commented, “Infosys has a market-leading record of delivering critical engineering services to the most innovative technology companies worldwide, to amplify and accelerate their existing efforts. We will combine this expertise with the incredible array of pioneering technologies created by DreamWorks. This combination of capabilities and state-of-the-art technologies has enormous potential for wider use in the world around us.”
Infosys has clients, in more than 50 countries who the company says it helps to stay a step ahead of emerging business trends and outperform the competition.