Shares of DivX Inc. jumped more than 12% in extended trading after the video-compression software developer posted adjusted Q3 net income that beat Street estimates, boosted its full-year forecast, and announced a new CEO. DivX net income was $816,000 ($0.02/share), from $3.1 million ($0.10), a year ago. Net of one-time items, net income was $5.9 million ($0.17/share) on revenue of $21.9 million, up 42% from $15.4 million. Analysts had expected EPS of $0.14 on revenue of $24 million. The company also raised its 2007 forecast to an adjusted $0.57-0.59/share on revenue of $82.4-83.4 million. Analysts had forecast a 2007 profit of $0.49/share on revenue of $82 million. The company said Kevin Hell would take over as its new CEO. "DivX is a great company, and I believe we are in a strong position to emerge as the de facto standard for high-quality digital video across any device," Hell said in a statement. "I am excited to lead our team forward as we focus on three key market opportunities: growing our licensing business, launching our new DivX Connected platform, and expanding our content solutions," (full earnings call transcript). Hell has served as acting CEO since July, and has been with the company since 2002.
Commentary: DivX Buys Fine Art And Search Technology • DivX Buys Fine Art And Search Technology
Stocks to watch: DIVX. Competitors: AAPL, MSFT
Earnings call transcript: DivX Q3 2007
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