Guardian Film Unlimited reports that DreamWorks Animation missed earnings expectations in the first quarter, due to their expectation that Shrek 2 would bring in more than it did. DreamWorks, which distributes through Universal Home Video, over-projected the amount that the Shrek 2 DVD would make, thus allowing Universal’s costs on marketing and distributing the film to exceed revenue. As a result, DreamWorks received no revenue from the Shrek 2 DVD, despite the title being 2004’s top-selling DVD and bringing in $9 million in licensing and merchandising. In reponse to the situation, DreamWorks Animation CEO Jeffrey Katzenberg stated, “While we firmly believe that the Shrek franchise continues to be very strong, it is clear in retrospect that the unique blockbuster characteristics of Shrek 2 caused us to overestimate first quarter retail sales.” No further revenue from the Shrek 2 DVD is expected is come until the fourth quarter. Nonetheless, DreamWorks Animation reportedly brought in $46 million in first-quarter profit, compared to a $25 million loss in the same period in 2004. More info on the matter can be found at Video Business Online.