DreamWorks Animation SKG Inc. reports first-quarter earnings on Tuesday. The following is a summary of key developments and analyst opinion related to the period.

Glendale, Calif.-based DreamWorks, which creates computer-animated features including the blockbuster ""Shrek"" films, is still recovering from the failure of its ""Flushed Away"" flop last fall.

The company released the home video version of the film in the first quarter, which should boost revenue. But the release won't help profits because the film lost money at the box office.

Sales of DVDs, which underpinned earnings at movie studios in the past decade, have been slowing for more than a year, making it more vital for films to recoup their costs during the theatrical release.

In other news during the period, the company reported CEO Jeffrey Katzenberg earned $1 in 2006 after waiving his right to a stock package worth about $5 million. And in early March, DreamWorks said starting in 2009, it will produce all of its films using three-dimensional visual technology.

Source: DreamWorks Animation"