This excerpt taken from the DIVX 10-K filed Mar 29, 2007.
Interest income, net: We recorded net interest income of $3.0 million for 2006 compared to $223,000 for 2005. This increase is reflective of higher average cash balances, which during the first three quarters of 2006 have principally resulted from positive cash flow from operations. The higher cash balances in the last quarter of 2006 was principally the result of the proceeds from the sale of shares of our common stock in our initial public offering.
During 2005, we reported net interest income of $223,000 compared to net interest expense of $45,000 for 2004. Net interest income in 2005 was due to higher interest earned due to high cash balances in combination with lower interest expense on lower interest-bearing debt outstanding during 2005 compared to 2004.