DivX 2006 Revenue Increases 80 Percent Over 2005

2006 Revenue Increases 80 Percent Over 2005; Net Income Grows by 600 Percent Over The Same Period

DivX, Inc. today announced results for the quarter and year ended December 31, 2006. DivX reported fourth quarter consolidated revenue of $16.7 million, an increase of 57 percent from the fourth quarter of 2005. Consolidated revenue for the year was $59.3 million, an increase of 80 percent from 2005.
Net income in the fourth quarter of 2006 was $7.4 million, or $0.21 per diluted share, compared to net income of $2.2 million, or $0.03 per diluted share, in the fourth quarter of 2005. Included in fourth quarter 2006 net income is $900,000 of stock-based compensation costs.

Net income for the year was $16.4 million, or $0.61 per diluted share, compared to net income of $2.3 million, or $0.00 per diluted share for 2005. Included in 2006 net income is $2.4 million of stock-based compensation costs.

Jordan Greenhall, CEO of DivX, Inc., said, "2006 was a remarkable year for DivX and the entire digital media market. Consumers began to show their true influence on the future direction of digital media and the technologies that will help make media better. We remain excited about the direction of the business and our goal of providing a common media language that bridges all possible devices and content on an open platform."

John Tanner, CFO of DivX, Inc., added, "In 2006, we continued to demonstrate the healthy growth in revenue and earnings that have differentiated DivX in the past. Additionally, our solid cash flows from operations contributed to a strong balance sheet, which provides us a sturdy base from which to drive our future business strategy."

Guidance - For the first quarter of 2007, revenue is anticipated to be in the range of $17.3 to $19.3 million - DivX.