This excerpt taken from the NFLX 8-K filed Jul 23, 2007.
GAAP Net Income $25.6 million
LOS GATOS, Calif., July 23, 2007 Netflix, Inc. (Nasdaq: NFLX) today reported results for the second quarter ended June 30, 2007.
As expected, second-quarter revenue and subscriber growth reflected the impact of intense competition, as we delivered subscribers and revenue at the low end of our guidance range, even while achieving near record net income, said Reed Hastings, Netflix co-founder and chief executive officer.
Online DVD rental is a large and attractive opportunity and we remain committed to investing in our long-term growth. With yesterdays price cuts in two of our most popular subscription plans, together with the reductions in February and June, we are choosing to lower price and reduce marketing as the most efficient means of sub growth and retention in the current competitive environment, and we are lowering our full-year guidance for revenue, subscribers, and earnings accordingly.