DivX Mixed Results
DivX (DIVX-NASDAQ) has shown that licensing media compression players is not a bad model at all, although the gains in after-hours turned into losses in a hurry. The company posted 80% revenue growth for all of 2006, but the company…
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DivX (DIVX-NASDAQ) has shown that licensing media compression players is not a bad model at all, although the gains in after-hours turned into losses in a hurry. The company posted 80% revenue growth for all of 2006, but the company posted Q4 EPS at $0.21 and net income at $7.4 million on revenues of $16.4 million. That is up from $0.03 and $2.2 million in Q4 2005. This looks above the street estimates, but calling for estimates on a company that has been public only a few months is more "ranging" than it is science. Its annual net income for 2006 was $16.4 million and EPS was $0.61. For the first quarter of 2007, revenue is anticipated to be in the range of $17.3 to $19.3 million.
The initial reaction was up 4%, but now shares are down more than 4% to $22.65 in after-hours. This is a recent Hot IPO so it probably isn’t a shock to see all the volatility in the name. DIVX closed up 1.1% at $23.69 on only half its normal volume ahead of the report. Its market cap at the close was $778 million.
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McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.