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 last 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 Partners • Why 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. (ADBE), Apple Computer Inc. (AAPL), Microsoft Corp. (MSFT)
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