Updated from 5:32 p.m. EDT
Shares of DivX (DIVX) surged 14% in extended trading Monday after the company named Kevin Hell chief executive and its quarterly profits beat estimates.
Hell's appointment was effective Oct. 31.
"DivX is a great company, and I believe we are in a strong position to emerge as the de facto standard for high-quality digital video across any device," Hell said in a statement. "I appreciate the vote of confidence from our board of directors, and I am excited to lead our team forward as we focus on three key market opportunities: growing our licensing business, launching our new DivX Connected platform, and expanding our content solutions."The company also reported record revenue for the third quarter, saying it had a top line of $21.9 million, an increase of 42% from a year ago. DivX earned about $800,000, or 2 cents a share. Excluding items, DivX would have earned 17 cents in the quarter, 5 cents better than expected. Hell, 43, has served as acting CEO since July. Between 2002 and 2007, Hell held a number of management positions within DivX. Shares of the digital-video technology creator caught fire on the news, jumping $1.67 to $13.65. Commenting on Hell's appointment, Jordan Greenhall, DivX's chairman, said, "Kevin is a strong leader with a distinguished track record who has been leading our consumer electronics licensing business for over five years. Coupled with 20 years in the industry, Kevin is the logical choice as CEO for DivX as it refocuses on opportunities in several key product markets. The entire board looks forward to working with Kevin as he moves into his new role."