DivX Sues Yahoo Over Pact Termination; Cuts '08 View
Digital-media company DivX also said the termination would hurt its 2008 and 2009 results.
DivX Chief Executive Kevin Hell said the company would aggressively pursue legal action and said Yahoo's decision to breach its agreement, first announced in September 2007, was "unjustified given DivX's fulfillment of its obligations under the agreement."
DivX said it now sees adjusted earnings for fiscal 2008 of 49 cents to 51 cents a share on revenue of $90 million to $92 million, down from its view last month of 58 cents to 60 cents a share on revenue of $95 million to $97 million.
Hell said the company would focus on driving its core licensing business and "diligently pursue alternatives to replace the Yahoo deal and continue to grow our software distribution business."
Representatives from Yahoo weren't available for comment.
DivX shares were down 3.4% to $5.35 in after-hours trading.
-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com;
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(END) Dow Jones Newswires
November 17, 2008 17:01 ET (22:01 GMT)
Publié le 17 novembre 2008 Copyright © 2008 Dowjones
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