Animation firm DreamWorks has seen profits drop as it did not recoup the marketing costs of Shrek 2, and Wallace & Gromit: The Curse of the Were-Rabbit.
Wallace and Gromit have become Hollywood stars
Also hurting earnings was a lack of new releases, the company said.
Net profit was $12.3m (£6.7m) in the first quarter of 2006, compared with $45.7m a year earlier. Sales in the period slid to $60.1m from $166.9m.
Dreamworks was established by Hollywood heavyweights Steven Spielberg, David Geffen and Jeffrey Katzenberg.
At the end of last year it was bought by Paramount Pictures for $1.6bn.