DivX increases full-year outlook following strong 1Q

SAN DIEGO—DivX Inc., a video-technology company, on Monday raised fiscal-year guidance based on strong first-quarter results.

The San Diego-based company expects an adjusted 2008 profit of 52 cents to 58 cents per share, excluding one-time items, including expenses related to exiting its Stage6.com video service. Previously the company said it expected a profit of 44 cents to 52 cents per share.

Analysts polled by Thomson Financial, on average, expect a profit of 47 cents per share. Analysts typically exclude one-time items.

The company affirmed yearly revenue expectations of $95 million to $100 million, while analysts expect revenue of $98.2 million.

The company also said it expects a second-quarter profit of 3 cents to 5 cents per share.

Excluding a stock-option expense, impairment of intangible assets and amortization of purchased intangibles the company predicts earnings of 9 cents to 11 cents per share.

Analysts predicted a profit of 7 cents per share.

DivX expects revenue in the second quarter between $20.5 million and $21.5 million, while analysts predict revenue of $21.5 million.

Shares rose $1.26, or 16.3 percent to $9 during aftermarket electronic trading, after closing the regular session up 22 cents at $7.74.

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