Steve Jobs’ Pixar receives ‘informal request for information’ from SEC

“A media report revealed Friday that the U.S. Securities and Exchange Committee launched an informal inquiry into Steve Jobs’ Pixar (PIXR) after heavier-than-expected returns of The Incredibles DVD led the studio to fall short of its second-quarter earnings forecast,” Chris Noon reports for Forbes. “Pixar, whose shares fell nearly 2% Friday, said it is cooperating with the SEC. On August 4, Pixar turned in second-quarter earnings of $12.7 million, or 10 cents per share, compared to $37.4 million, or 32 cents per share, for the same period a year earlier. Revenue plunged to $26.4 million from $66.3 million, with sales of the DVD weaker than expected. The studio also took the prudent measure of increasing the cash in its reserves coffers in anticipation of reimbursing retailers for unsold copies of the movie.”

Full article here.

“The [Pixar] news comes as rival DreamWorks Animation (DWA) faces an SEC probe relating to sales and returns of Shrek 2. The SEC is looking into events surrounding DreamWorks’ earnings debacles earlier this year,” Sandy Brown reports for TheStreet.com. “In relaying the DVD return news to investors two months ago, Pixar cited the same home-video retail-return issues that seem to be plaguing Hollywood across the board. Media analyst Marla Backer of Soleil Securities says that ‘the SEC would have been negligent had they not investigated the situation surrounding the Pixar DVD release’ but adds that it would be wrong to compare the Pixar and DreamWorks situations. Still, Backer says we can expect the issue to overhang these stocks for some time.”

Full article here.

18 Comments

  1. It’s the frigging cable companies!!

    They are sucking the life out of everyone’s entertainment budget, another thing is the rising fuel costs.

    Why spend $2 in gas to go get a $20 DVD when you can watch the movie for $12 via cable box?

  2. Yeah. The Incredibles sucked. What good’s a movie without loads of explosions, heavy artillery, gory graphic violence, tons of killings, and banal one-liners? If I don’t leave the theater all amped up and ready to take my aggressions out on the road behind the wheel of a 2,500lb assault weapon, then the movie just wasn’t worth the popcorn.

  3. I think the visuals were great, but the story was a bit to compelcatted for me to follow. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

    Honestly, a great 50’s theme.. Just had to buy the special edition.

  4. We have to remember the story between Walt Disney and PIXAR. Pixar is now fullfilling a 5 years contract. Cars is the latest from a Disney Legacy and that will be it. PIXAR is onto something else than giving good story and everything else in this contrat. Expect the same thing from Cars. PIXAR is in a R&D phase.

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