DivX 4Q profit drops 31 percent

SAN DIEGO (AP) — Video technology company DivX Inc. on Monday said its fourth-quarter profit fell 31 percent due to weaker sales as consumers cut back amid the recession.

Net income declined to $2.6 million, or 8 cents per share, from $3.7 million, or 11 cents per share, a year ago. Stripping out share-based compensation expenses, amortization of purchased intangible assets and asset impairment charges DivX earned $4.6 million, or 14 cents per share.

Revenue decreased 5 percent to $23.2 million from $24.5 million, in the year-ago period.

Analysts were expecting a profit of 6 cents per share on revenue of $20.6 million, according to a poll by Thomson Reuters.

For the full year, the company reported a profit of $10 million, or 30 cents per share, compared with a profit of $9.2 million, or 26 cents per share, a year earlier. Excluding one-time items, the company earned 59 cents per share in 2008.

Revenue grew 11 percent to $93.9 million from $84.9 million.