The L.A. Times reports that Pixar Animation Studios is confirming they are the focus of a Securities and Exchange Commission inquiry. Though neither the SEC nor Pixar are commenting on the subject of the inquiry, “analysts speculated that it might concern the sharp drop in revenue reported by the company in its second quarter because of lower-than-expected DVD sales of its 2004 release, The Incredibles”. The announcement comes soon after DreamWorks Animation announced that the SEC was investigating stock trading at the time the company reported low DVD sales of Shrek 2. Analysts contacted by The Times seemed to consider the Pixar inquiry a formality. One said that “In our dealings with Pixar, we note that the company has historically been transparent and aboveboard in communicating with investors and analysts”. Another stated that they “think the SEC wanted to make itself comfortable that the reporting of information [by Pixar] from the retail channel was done in a timely manner, and I think Pixar did just that. They warned the street in advance”.