Tuesday, November 18, 2008

Yahoo! Ceases Payments to DivX. DivX Sues

DIVX: Yahoo! Informs Company of Intention to Cease Required Payments Under Advertising Services Agreement; DIVX lowers its '08 guidance as a result; DIVX files lawsuit against Yahoo for intentional breach of contract. The Company anticipates that its revenues for 2008 will range from $90 million to $92 million as compared to its previous estimates of $95 million to $97 million. In addition, the Company anticipates its non-GAAP EPS for 2008 will range from $0.49 to $0.51 as compared with its previous estimates of $0.58 to $0.60. "We believe the current economic environment will continue to be challenging, but we plan to operate our business in a disciplined manner, while maintaining tight control of expenses."

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