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Free Cash Flow

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.

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DivX Continues Momentum in Blu-ray Category with New DivX Certified(R) Player from Panasonic

 
Comtex
 

SAN DIEGO & TOKYO, Jul 24, 2008 (BUSINESS WIRE) ----DivX, Inc. (NASDAQ: DIVX), a digital media company, today announced the DivX Certification(TM) of a new Blu-ray Disc (BD) Player from Panasonic, the DMP-BD50. The DMP-BD50 is the first DivX Certified(R) Blu-ray model to be shipped to the U.S. market and will also be distributed throughout Europe.

DivX has currently certified 19 stand-alone Blu-ray models. The DMP-BD50 is the newest Blu-ray player in Panasonic's line, preceded by the DMP-BD30, to offer a high-quality DivX(R) digital video experience. The DMP-BD50 is Panasonic's third generation Blu-ray player, offering the new BD-Live function which allows consumers to enhance their entertainment experience through the Internet. Consumers will be able to play back DivX video stored on CD-R or DVD-R, transferring content from the PC to the home theater. Panasonic's DMP-BD50 adds to the increasing number of DivX Certified Blu-ray players and over 100 million other DivX Certified devices that have been shipped by DivX licensees into the market, including digital televisions, set-top boxes, in-car multimedia players, mobile phones, and digital cameras.

"There has been consistent consumer demand for products that support DivX video and the feature has significantly enhanced our product offerings, differentiating us from our competitors," said Kazuhiko Nakamura, Group Manager of Product Technology, Video Business Unit, Network Business Group, Panasonic AVC Networks Company, Matsushita Electric Industrial Co., Ltd. "We are pleased to continue working with DivX in offering consumers a quality solution for their digital needs."

"DivX is dedicated to bringing a high-quality digital experience to any device and we are thrilled to continue this drive within the Blu-ray market by extending DivX Certification to the Panasonic DMP-BD50," said Kevin Hell, Chief Executive Officer, DivX, Inc. "We have achieved considerable success in the DVD category, becoming a standard checklist feature."

Products that bear the DivX Certified(R) logo have undergone a rigorous testing program to ensure interoperability, security and visual quality. DivX Certified products enable consumers to create, play, and share high-quality video content across a range of devices and platforms.

For more information on DivX Certification, visit www.divx.com/certification.

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.

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: Jon Paul McLeary, 858-882-6425 Jpmcleary@divxcorp.com or Investor Contact: Karen
   Fisher, 858-882-6415 kfisher@divxcorp.com 
Copyright Business Wire 2008 **********************************************************************
   As of Sunday, 07-20-2008 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.
 
 

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