DreamWorks Animation SKG, Inc. today announced financial results for its second quarter ended June 30th that shows profits declined 6.2%. Without a new home entertainment DVD in the marketplace, costs outpaced box office gains since the theatrical release of films is the most expensive time of their sales cycle. Total revenue was $158.1 million and net income of $24.0 million, or $0.27 per share on a fully diluted basis. “Our strong second quarter was driven primarily by the blockbuster performances of Shrek Forever After and How to Train Your Dragon, two of the top 10 films of 2010 on both a domestic and a worldwide basis,” said CEO Jeffrey Katzenberg. “We have once again surpassed $1 billion in worldwide box office and with Megamind still to be released on November 5th, we are on track to make 2010 not only DreamWorks Animation’s single biggest year at the box office, but also the biggest year ever for any CG animation studio.”

The Company also announced today that its Board of Directors has approved a new $150 million share repurchase program. For the six months ended June 30, 2010, the Company has repurchased approximately 3.1 million shares for approximately $111 million. I’ve previously reported that Katzenberg has been shopping DWA to several Big Media companies.

Shrek Forever After, which was released on May 21, 2010, contributed $51.8 million of revenue in the quarter, generated by its domestic box office performance as well as merchandising and licensing activities. How to Train Your Dragon, which was released on March 26, 2010, contributed $33.4 million of revenue to the quarter. Both should have big-selling DVDs in the marketplace before the holiday season.

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The Company’s 2009 release, Monsters vs. Aliens, contributed $17.2 million of revenue to the quarter. Library and other items contributed approximately $48.8 million of revenue to the quarter. Costs of revenue for the quarter equaled $98.7 million. Selling, general and administrative expenses totaled $27.8 million, including approximately $7.9 million of stock compensation expense and approximately $2.0 million of marketing expense related to the launch of the Company’s online virtual world, Kung Fu Panda World. Additionally, the Company recorded an expense of approximately $8.7 million related to its tax sharing agreement with a former stockholder.