Earnings: DivX Q3 Revenue Up 42 Percent; Kevin Hell Named CEO

Video compression company DivX (NSDQ: DIVX) reported Q3 revenue of $21.9 million, up 42 percent over last year’s $15.4 million. Excluding share-based compensation and certain other items, the company earned net income of $5.9 million, up 73 percent from last year’s $3.4 million. Including those items, earnings in the quarter came to $800,000, with much of the difference attributable to $4 million in costs associated with potential spin-off video sharing service Stage6. Although DivX has struggled to please investors since going public about a year ago, this announcement is going over well — the stock was up more than 14 percent in early after-hour trading.
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Separately, the company announced that Kevin Hell, interim CEO since July, has been appointed CEO. Hell has been with the company since 2002. Release.