DivX plummets on missed Q1 earnings estimates
Shares of DivX Inc. (Nasdaq: DIVX) plunged on heavy volume in after-hours trading today after the San Diego, Calif.-based digital media company reported first-quarter earnings that came in below analysts’ estimates.
For the quarter ended March 31, DivX reported net income of $3.7 million, or $0.10 per share, on revenue of $20.2 million, compared with net income of $3.3 million, or $0.11 per share, on revenue of $14.1 million in the 2006 first quarter.
Seven analysts polled by Thomson First Call had estimated earnings per share of $0.14 on revenue of $19.8 million.
By 6:11 pm ET, DivX’s stock had dropped by $2.84, or 14.2%, to $17.16. More than 1.6 million shares had changed hands, compared with an average three-month daily volume of about 657,000 shares.
Shares have traded between $17.22 (on Sept. 22, 2006) and $31.89 (on Nov. 29, 2006) in the past year.
On April 24, DivX announced that CFO John Tanner plans to leave the company at the end of May for personal reasons.
In October 2006, DivX formed a partnership with Photobucket, a Denver-based online personal media company. The licensing deal allows Photobucket users to upload and share video clips with DivX's video-compression technology.
