By Manoush Zomorodi BBC News

The Da Vinci Code's success marked a turnaround in US box office fortunes

Hollywood executives have been watching with bated breath to see if Americans would return to cinemas after revenue at the box office hit record lows last summer.

As of early July the picture has brightened for Hollywood with a slight surge in profits.

The news comes as a big relief - just weeks ago the figures were not encouraging, according to film industry analysts.

"We started off with Poseidon not doing as well as the studio had hoped," says The Hollywood Reporter's Gregg Goldstein.

Better films

"Then Mission Impossible 3 came out, did pretty well, but didn't really do the numbers domestically that it could have.

"So the worries were that the films after that would follow that pattern," he adds.

The trend reversed with the release of The Da Vinci Code and X-Men: The Last Stand in May.

Both films were highly anticipated and performed strongly at the box-office.

Almost two months later, 2006 US box office returns are 5% higher than last year, with weekend figures up on the same period last year.

International audiences have become more important than ever in terms of helping Hollywood make a profit Gregg Goldstein, Hollywood Reporter

Analysts say the reason is two-fold. Not only are this summer's films better, but executives have also stopped relying on young men to make up the bulk of summer cinema-goers.

DVDs, video games and the internet continue to lure young men away from the movies, so Hollywood executives have decided to woo other demographics.

"You're really seeing the strength of the adult and female audience," says Mr Goldstein.

"That's been proven most dramatically with the opening weekend of The Devil Wears Prada- a movie that made $40m in the first few days of its release - $5m more than its estimated cost.

'Nervous'

"Even with Superman Returns a lot of the audience is over 25," he adds.

Hollywood is banking on summer releases including Pirates of the Caribbean: Dead Man's Chest, Lady in the Water, World Trade Center and Miami Vice.

Even if they fail to perform spectacularly in the US, Hollywood can count on international audiences to help boost their box office take, according to Mr Goldstein.

The Devil Wears Prada has shown the power of female cinema-goers

"International audiences have become more important than ever in terms of helping Hollywood make a profit.

"Since this represents two-thirds of a film's entire theatrical box office, it says a lot about where things have gone over the last few years. Cinemas have become more widespread worldwide."

But Hollywood still faces major challenges including softening DVD sales and simultaneous release - when a film comes out in cinemas and on DVD at the same time.

"Film executives are very nervous about simultaneous release," Mr Goldstein says.

"There's a concern that if cinema and DVD release dates move closer together, movie-goers will no longer want to go out to the movies if they can simply watch them at home."

Hollywood is watching nervously to see where changes in technology will lead the movie industry.