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Earnings: DivX Q1 Revs Up 24 Percent; Full-Year Outlook Raised

This story was written by Joseph Weisenthal.
Digital encoding firm DivX (NSDQ: DIVX) announced Q1 revenue of $25 million, a 24 percent increase from $20.2 million in the year-ago quarter. Net income slid to $2.48 million ($.07 per share) from $3.6 million ($.10 per share), although this current quarter included various one-time charges. Among them: the shutdown of video sharing site Stage6, which cost the company $.06 per share. Impairment and amortization of various intangible assets cost the company another $.03 per share. DivX attributed its growth to strength in various markets, including Blu-ray discs, and it raised its outlook for the year: It now expects non-GAAP EPS of $.52-$.58 per share, compared to an estimate of $.44-$.52 per share.

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By Joseph Weisenthal