DivX Sets Price Range for IPO

Just when you thought an alien had abducted the tech IPO market, along comes DivX.

The six-year-old, San Diego, California company develops software that lets people create and play highly compressed video files that can easily be distributed over the Internet and wireless networks. On August 29, DivX set the price range for its proposed IPO at $12 to $14 per share, signalling that it could raise as much as $127.4 million.

The company would receive $104.5 million of that sum since the rest would go to current stockholders who are unloading their shares in the offering.

Vonage this isn't. Last year, DivX turned in EPS of 0.093 cents on sales of $33 million, up 102% from the previous year.

Comments

[Mr WaveTheory:]

This is far from being a done deal. DivX depends on Google Toolbar for roughly a fifth of its revenue. And with Firefox installing GOogle Toolbar, the market will be saturated. I show that without Google, DivX would not have been profitable.

2006 Sep 03 01:28 AM