Pixar Reports Second Quarter Financial Results

EMERYVILLE, Calif., Aug. 4  /PRNewswire-FirstCall/ -- Pixar Animation Studios (NASDAQ:PIXR) today announced financial results for its fiscal second quarter ended July 2, 2005.  For the quarter, Pixar reported revenues of $26.4 million and earnings of $12.7 million, or $0.10 per fully diluted share. Revenues for the six months ended July 2, 2005 were $187.7 million, and earnings were $94.6 million, or $0.77 per fully diluted share.

"We're very pleased with the overall performance of The Incredibles, which is by far the highest-selling DVD in 2005," said Pixar CEO, Steve Jobs.  "Cars is almost completed and is looking fantastic, and we have no doubt that it will be one of our best films to date."

Earnings Conference Call Scheduled for 5:30 p.m. EDT -- Please Note Time Change

The company will discuss its second quarter 2005 earnings results during a conference call to be held today, Thursday, August 4, 2005 at 5:30 p.m. EDT, 2:30 p.m. PDT. The call, hosted by Pixar's Chairman and Chief Executive Officer, Steve Jobs, and Executive Vice President and Chief Financial Officer, Simon Bax, can be accessed by dialing 877-777-1973 (U.S.) or 651-291-0900 (Int'l) approximately 10 minutes prior to the start time.  A replay of the call will be provided through Thursday, August 11, 2005 until midnight EDT. To access the replay, please call 800-475-6701 (U.S.) or 320-365-3844 (Int'l) and reference the reservation code: 789073.

Pixar will also provide live audio streaming of its second quarter 2005 results conference call.  The webcast will be accessible through Pixar's web site at http://www.pixar.com/investor/index.html.

About Pixar Animation Studios

Pixar Animation Studios combines creative and technical artistry to create original stories in the medium of computer animation.  Pixar has created six of the most successful and beloved animated films of all time: Toy Story, A Bug's Life, Toy Story 2, Monsters, Inc., Finding Nemo and The Incredibles. Pixar has won 18 Academy Awards(R) and its six films have grossed more than $3.2 billion at the worldwide box office to date.  The Northern California studio will release its next film, Cars, on June 9, 2006.

This release contains forward-looking information regarding Pixar's targeted release date for Pixar's next film and actual results may differ materially.  Factors that could cause delays in the release of the film include, but are not limited to:  (1) the uncertainties related to production delays; (2) financing requirements or other marketing or distribution factors; (3) personnel availability; (4) external socioeconomic and political events; and (5) the release dates of competitive films.  Please refer to Pixar's 2004 Form 10-K, 2005 First Quarter Form 10-Q and other filings with the Securities and Exchange Commission, particularly the sections on risks, for important factors that could cause actual results to differ.

Note to Editors: Condensed Statements of Income and Balance Sheets to follow.

  Pixar Animation Studios
  Condensed Statements of Income
  (Unaudited, in thousands, except per share data)

                                  Quarter Ended            Six Months Ended

                               July 2,     July 3,       July 2,     July 3,
                                 2005        2004          2005        2004

  Revenue:
     Film                   $  23,446   $  63,713    $  181,358   $  114,805
     Software                   2,991       2,576         6,323        5,308

          Total revenue        26,437      66,289       187,681      120,113

  Cost of revenue:              4,274       6,437        31,731       12,341

            Gross profit       22,163      59,852       155,950      107,772

  Operating expenses:
     Research and development   3,105       4,154         5,929        7,552
     Sales and marketing          752         635         1,514        1,007
     General and administrative 3,920       3,017         8,295        6,093

          Total operating
           expenses             7,777       7,806        15,738       14,652

  Income from operations       14,386      52,046       140,212       93,120
     Interest income and
      other                     5,783       2,489        10,559        5,385
  Income before income taxes   20,169      54,535       150,771       98,505
     Income tax expense         7,467      17,150        56,182       34,378

  Net Income                 $ 12,702    $ 37,385      $ 94,589     $ 64,127

  Basic net income per share $   0.11    $   0.33      $   0.80     $   0.57

  Diluted net income per
   share                     $   0.10    $   0.32      $   0.77     $   0.55

  Shares used in computing basic
   net income per share       118,338     112,574       117,833      112,078

  Shares used in computing
   diluted net income per
   share                      123,537     117,974       123,023      117,594


  Pixar Animation Studios
  Condensed Balance Sheets
  (Unaudited, in thousands)
                                                     July 2,     January 1,
                                                       2005           2005
  ASSETS

  Cash and investments                          $    901,428  $    854,784
  Receivables, net                                   149,689        81,962
  Prepaid expenses and other assets                    3,283         2,227
  Deferred income taxes                               75,061        70,424
  Property and equipment, net                        125,863       125,602
  Capitalized film production costs, net             147,148       140,038

        Total assets                            $   1,402,472  $ 1,275,037

  LIABILITIES AND SHAREHOLDERS' EQUITY

  Liabilities:
    Accounts payable                            $      1,700   $     5,392
    Income taxes payable                              13,566        14,077
    Other accrued liabilities                         16,717        26,971
    Unearned revenue                                  10,732         8,502

        Total liabilities                             42,715        54,942

  Shareholders' equity:
    Common stock                                     732,995       687,387
    Accumulated other comprehensive loss              (2,746)       (2,211)
    Retained earnings                                629,508       534,919
        Total shareholders' equity                 1,359,757     1,220,095

  Total liabilities and shareholders' equity    $  1,402,472   $ 1,275,037


DATASOURCE: Pixar Animation Studios



CONTACT:  Nils Erdmann, Investor Relations of Pixar Animation Studios,

[phone]; or John Buckley of Brainerd Communicators, [phone],

for Pixar Animation Studios



Web site: http://www.pixar.com/investor/index.html 




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