DivX Shares Tumble on Earnings Miss

| About: DivX, Inc. (DIVX)

DivX Inc. reported Q1 income of $3.66 million ($0.10/share), short of analyst estimates of $0.14. Revenue of $20.2 million was up from $14.1 million last year on strong gains in technology licensing, beating Street expectations of $19.8 million. For Q2 the company forecasts $16.7-18.7 million in revenue; analysts are calling for $18.2 million. DivX creates and licenses video compression and decompression technology. Gross margins were about 95%. Stock-based compensation went from $366,000 DivX Inc 02 05 2007 Chartlast year to $944,000. CEO Jordan Greenhall said, "The media world is in the earliest stages of a digital revolution, and we believe DivX is well-positioned to play a significant role as the future of the industry takes shape." Shares dropped 14.7% to $17.06 in after-hours trading.

Sources: Press release, San Diego Business Journal, MarketWatch
Commentary: A Year In Rewind - DivX’s Past And Present CE PartnersWhy Is Adobe - Not DivX - Leading the Internet Video Market?DivX May Be About To Break Out
Stocks/ETFs to watch: DivX Inc. (DIVX). Competitors: Adobe Systems Inc. (NASDAQ:ADBE), Apple Computer Inc. (NASDAQ:AAPL), Microsoft Corp. (NASDAQ:MSFT)

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.