Pixar Fishes for Partner as It Swims in ‘Nemo’ Profit

Pixar Animation Studios tripled its first-quarter profit thanks mainly to home video sales of “Finding Nemo,” but the big fish of digital animation is still searching for a new partner to distribute its movies.

“We continue to have exploratory meetings with other studios,” Pixar Chief Executive Steve Jobs told analysts Thursday after the company issued its earnings report. “It’s still in the getting-to-know-each-other stage.”

Jobs stunned Walt Disney Co. -- and Wall Street -- this year by abruptly ending negotiations with Disney Chief Executive Michael Eisner to extend the companies’ relationship. It has been one of Hollywood’s richest partnerships, producing five straight hits.

The talks ended after Disney balked at Pixar’s demands for changes in the partnership terms.

Right now, the two split profit and costs and Disney gets a distribution fee for each film. Jobs insisted that Pixar receive all the profits from all joint movies, including two being made under the current deal: “The Incredibles,” which comes out in November, and “Cars,” set for 2005. Disney would get only a distribution fee.

Since Jobs called off the negotiations in January, Hollywood has been abuzz with speculation about Pixar’s next distribution partner. Jobs hasn’t identified any favored suitors, but people familiar with Pixar’s dealings have named Time Warner Inc.’s Warner Bros., News Corp.’s 20th Century Fox, Vivendi Universal’s Universal Studios and Sony Corp.’s Sony Pictures Entertainment.

Jobs said in an interview Thursday that he was in no rush to sign a new deal: “We’re trying to take our time to do it right, because we have the time to do it right.”

Pixar, based in Emeryville, Calif., wants to have a deal in place at least 18 months before it releases its first non-Disney movie, slated for late 2006, Jobs said. That movie is rumored to be about a rat named Ratatouille who lives in a Paris restaurant.

Despite the fallout with Disney, the companies have maintained a “positive” working relationship, Jobs said, adding, “We’re working very hard to maximize the success of these films.”

Jobs declined to discuss speculation by some, including former Disney director Stanley Gold, that Jobs could be a replacement candidate for Eisner, whose contract expires in September 2006.

“I’m not even going to go there,” Jobs said.

Fueled by strong home video sales for “Finding Nemo,” Pixar reported net income of $26.7 million, or 46 cents a share, in its fiscal first quarter ended April 3, up from $8.2 million, or 15 cents, a year earlier. Revenue for the quarter was $53.8 million, up from $18.7 million.

Shares of Pixar closed down 19 cents Thursday to $66.06 on Nasdaq.

Times staff writer Claudia Eller contributed to this report.