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Friday, August 26, 2005

Maybe it wasn't such a good idea...

.... making Dory (the forgetful fish from 'Finding Nemo') the chief financial officer at Pixar Animation Studios.

The news today is that the Securities and Exchange Commission has launched an informal inquiry at Pixar, related to greater-than-expected returns of "Incredibles" DVDs. Those returns caused Pixar to miss its second-quarter earnings forecast.

The SEC, of course, is also looking into the trading of DreamWorks Animation's stock and its Q1 earnings announcement. (The DVD of "Shrek 2," like "The Incredibles," didn't sell as well as DreamWorks had expected.)

UPDATE: This AP story sheds a little more light on the inquiry: "Analysts who cover Pixar suspect that the SEC wants to learn more about why DVD sales of the movie `The Incredibles' fell short of expectations and whether the company should have notified investors sooner."

"'The big question is when did these guys know things were going wrong and when should they have told everybody,' said Dennis McAlpine, managing director of McAlpine Associates LLC.

"The SEC often requests information from companies, and it does not necessarily mean that laws were violated."