Earnings: DivX Profits Drop 61.5 Percent In Q2; Revs Rise 39 Percent

Video compression company DivX (Nasdaq:DIVX) reported that Q2 net income was $1 million, or $0.03 per diluted share, down 61.5 percent from last year’s $2.6 million. Revenues were $18.3 million, a 39 percent rise over Q206’s $13.2 million. In an attempt to arrest its financial troubles, in July, DivX decided to spin-off its user-generated video unit Stage6 into its own company. Kevin Hell, who is serving as acting CEO of DivX, said in a pre-conference call statement that severing its ties to Stage6 will allow the company to be more focused on its core business.

Also, Stage6 operating costs for Q2 was $2.4 million, and $3.4 million for the first six months of the year.

Earnings release | Webcast (5:00 pm. EDT)

Comments have been disabled for this post