Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

Home / Markets / Industries / Technology

Tuesday, July 29, 2008

DivX and CinemaNow to Expand Premium Content Delivery to New Consumer Electronics Devices

Email this Story | Respond to Editor | Print

Comtex

SAN DIEGO & MARINA DEL RAY, Calif., Jul 29, 2008 (BUSINESS WIRE) ----DivX, Inc. (NASDAQ:DIVX), a digital media company, and CinemaNow, the digital entertainment innovator in delivering high-quality Hollywood movies and TV shows across multiple platforms, today announced an agreement that will allow CinemaNow to offer users the ability to download premium content in the high-quality DivX(R) format and play back those titles on the PC, as well as a range of DivX Certified(R) consumer electronics devices from major manufacturers, including DVD players, mobile devices and more.

"CinemaNow is the pioneer in the area of online distribution, consistently offering users new and innovative ways to access and enjoy a wide variety of digital video content," said Kevin Hell, CEO of DivX, Inc. "By working with DivX, CinemaNow can further extend their premium download experience to additional consumer electronic devices from the world's leading manufacturers, including DVD players in the living room, mobile phones on the go, and gaming platforms."

"DivX offers an easy way to transfer secure, high-quality digital video content from the PC to the living room and mobile devices," said David Cook, president and COO of CinemaNow. "By working together, we can extend the premium online experience to the broadest range of platforms and devices in the marketplace, further delivering on the CinemaNow mission to empower consumers to enjoy digital entertainment anytime and anywhere."

The two companies will work together to integrate DivX technology into the CinemaNow offering, and CinemaNow will work with content providers to secure the availability of content in the DivX format for the prospective service. For more information on DivX, visit www.divx.com. To learn more about CinemaNow, visit www.cinemanow.com.

About DivX, Inc.

DivX, Inc. is a digital media company that enables consumers to enjoy a high-quality video experience across any kind of device. DivX creates, distributes and licenses digital video technologies that span the "three screens" comprising today's consumer media environment--the PC, the television and mobile devices. Over 100 million DivX Certified devices have shipped into the market from leading consumer electronics manufacturers. DivX also offers content providers and publishers a complete solution for the distribution of secure, high-quality digital video content. Driven by a globally recognized brand and a passionate community of hundreds of millions of consumers, DivX is simplifying the video experience to enable the digital home.

About CinemaNow

CinemaNow, Inc. (www.cinemanow.com) is an innovator in digital entertainment technology, delivering high-quality Hollywood movies, TV shows and music videos to users across multiple platforms. Founded in 1999, CinemaNow has partnered with some of the biggest brands in consumer electronics and digital entertainment including ARCHOS, DivX, EchoStar Communications, Hewlett-Packard, Macrovision, Microsoft, Samsung, Sonic Solutions and Technicolor to deliver thousands of video titles directly to consumers. CinemaNow works with more than 250 licensors including 20th Century Fox, Disney, EMI, HDNet, IFC, Lionsgate, MGM, Miramax, NBC Universal, Paramount Pictures, Sony, Sundance Channel, Vivendi Entertainment and Warner Bros.

Forward-Looking Statements

Statements in this press release that are not strictly historical in nature constitute "forward-looking statements." Such statements include, but are not limited to, statements regarding DivX's visibility within the investment community. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause DivX's actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include, but are not limited to: the risk that customer use of DivX technology may not grow as anticipated; the risk that anticipated market opportunities may not materialize at expected levels, or at all; the risk that the Company's activities may not result in the growth of profitable revenue; risks and uncertainties related to the maintenance and strength of the DivX brand; risks associated with DivX's ability to penetrate existing and new markets; risks regarding the effects of competition; DivX's dependence on its licensees and partners; the effect of intellectual property rights claims; and other factors discussed in the "Risk Factors" section of DivX's most recent report filed with the Securities and Exchange Commission on May 12, 2008. All forward-looking statements are qualified in their entirety by this cautionary statement. DivX is providing this information as of the date of this release and does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.

SOURCE: DivX, Inc.

DivX, Inc. Media Contact: Tom Huntington 858-882-0672
   thuntington@divxcorp.com or Investor Contact: Karen Fisher 858-882-6415 kfisher@divxcorp.com

Copyright Business
   Wire 2008 ********************************************************************** As of Friday, 07-25-2008 23:59, the latest
   Comtex SmarTrend� Alert, an automated pattern recognition system, indicated a DOWNTREND on 06-30-2008 for DIVX @ $7.51. For
   more information on SmarTrend, contact your market data provider or go to www.mysmartrend.com SmarTrend is a registered trademark
   of Comtex News Network, Inc. Copyright � 2004-2008 Comtex News Network, Inc. All rights reserved.