Shares of audio and video software firm DivX Inc. (Nasdaq: DIVX) rose on Tuesday after the company raised its revenue outlook for the first quarter of 2007.

The San Diego, Calif.-based firm said Monday it now expects that revenue for the first quarter will be between $19.8 million and $20.2 million and pre-tax earnings will be flat or higher compared to its previous quarter. The firm had said on February 8 that it expected revenue between $17.3 million and $19.3 million with earnings flat or slightly down.

Through the first quarter of 2007, we saw continuing evidence that consumers are choosing DivX to enrich their media experience, said Jordan Greenhall, co-founder and CEO of DivX, Inc. DivX is working with our partners and our global community to build a common media language that lets consumers truly make their digital content useful across an open ecosystem of consumer electronic devices.

The Company plans to report complete quarterly results after the market closes on May 1, 2007.

Shares rose $2.50, or 12.4 percent, to $22.60 in afternoon trading on the Nasdaq Stock Market.

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