DreamWorks recently released its fourth quarter financial report and shows that the animation studio is struggling to make both ends meet. Despite the massive restructuring drive it still posted a disappointing report as the company's stock price continues to fall.
DreamWorks posted $0.75 in total depreciation of its stocks. The company's revenue climb to $234.2 million which is significantly higher compared to the 2013 report.
Many business analysts pointed the drop in DreamWorks shares to the underperformance of its last movie, "Penguins of Madagascar," according to The Street. In order to cut down on its debt, DreamWorks decided to sell its studio in Glendale. The sale will add around $185 into the company's purse.
Additionally, the studio also decided to cut-off around 18 percent of its workforce which caused more than 500 people to lose their job. DreamWorks also opted to release two films per year instead of the usual three in order to put "the right strategic plans into place to ensure both the creative success of our films and the financial performance of our company over the long-term"
The company's upcoming major film will be released on Mar. 27 and the success or failure of the film will have a great impact on the studios future according to some analyst.
DreamWorks CEO Jeff Katzenberg predicted that this year television operation will give the company around $250 million in revenue with estimated gross-profit margin of around 30 percent.
Katzenberg added that the success of "Voltron" and "Dinotrux" has helped him keep a positive vibe towards the future of the company.
Another exciting sales opportunity that Katzenberg highlighted is the film "Trolls" which will be released on 2016, according to Deadline.