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Video Compression Firm DivX Files for $118 Million IPO

Authored by Mark Hefflinger on September 15, 2006 - 11:32am.
San Diego - DivX, a provider of video compression technology, announced this week that it plans to raise $118 million next week in an initial public offering of 9.1 million shares, at a price of $12 to $14 per share. Founded in 2000, the San Diego-based firm's DivX codec is available as an alternative to Windows Media or QuickTime for encoding video; its software has also been embedded on more than 50 million DVD players and other consumer electronics devices. The company reported a profit of $2.3 million and revenue of $33 million during 2005, and $5.9 million on revenue of $27.3 million during the first half of 2006. DivX expects net proceeds of around $87.4 million, which it will use for working capital and general corporate purposes.
http://tinyurl.com/naxpd (Reuters)
http://www.divx.com

tags: Deals | IPO | Video | Tech | Investing | Software | DivX | Stocks |



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