-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QScroxJxX7UbiChhBnWxwYAhfQ+7/Ge11YHQd2c0jITejVtwTeC3ISEHNzggplMD 0LAvlHsBUQuPO9zWurZscg== 0000000000-06-040729.txt : 20061121 0000000000-06-040729.hdr.sgml : 20061121 20060823094752 ACCESSION NUMBER: 0000000000-06-040729 CONFORMED SUBMISSION TYPE: UPLOAD PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20060823 FILED FOR: COMPANY DATA: COMPANY CONFORMED NAME: DIVX INC CENTRAL INDEX KEY: 0001342960 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING SERVICES [7371] IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: UPLOAD BUSINESS ADDRESS: STREET 1: 4780 EASTGATE MALL CITY: SAN DIEGO STATE: CA ZIP: 92121 BUSINESS PHONE: 858-882-0633 MAIL ADDRESS: STREET 1: 4780 EASTGATE MALL CITY: SAN DIEGO STATE: CA ZIP: 92121 PUBLIC REFERENCE ACCESSION NUMBER: 0001047469-06-010514 LETTER 1 filename1.txt Mail Stop 4561 August 22, 2006 R. Jordan Greenhall Chief Executive Officer and Chairman DivX, Inc. 4780 Eastgate Mall San Diego, California 92121 Re: DivX, Inc. Amendment No. 4 to Form S-1 Filed on August 7, 2006 File No. 333-133855 Dear Mr. Greenhall: We have reviewed your amended filing and have the following comment. Management`s Discussion and Analysis of Financial Condition and Results of Operations Critical Accounting Polices Stock Based Compensation, page 47 1. We note your disclosure regarding the Company`s use of the Black- Scholes model to estimate the fair value of share-based payment awards and that "...the fair values generated by the model may not be indicative of the actual fair values of [your] awards as it does not consider certain factors important to [your] awards, such as continued employment, periodic vesting requirements and limited transferability." It is not evident what you mean by this disclosure considering continued employment and periodic vesting appear to be taken into consideration by the Black-Scholes model by utilizing information for forfeitures and vesting terms to estimate the fair value of share-based awards. Please explain whether "limited transferability" relates to limitations on transferring underlying common stock share-based awards or the award itself. You may contact Kari Jin at 202-551-3481 or Thomas Ferraro at 202-551-3225, if you have questions regarding comments on the financial statements and related matters. Please address all other comments to Maryse Mills-Apenteng at 202-551-3457. If you require further assistance you may contact the undersigned at 202-551- 3462. If you still require further assistance, please contact Barbara C. Jacobs, Assistant Director, at 202-551-3730. Sincerely, Mark P. Shuman Branch Chief - Legal cc: Via facsimile: 858-550-6420 Steven M. Przesmicki, Esq. Jason L. Kent, Esq. Cooley Godward LLP R. Jordan Greenhall DivX, Inc. August 22, 2006 Page 2 -----END PRIVACY-ENHANCED MESSAGE-----