Netflix, Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported operating income of $31.82 million, income before income taxes of $0.93 million and net income of $2.7 million or $0.05 per diluted share on revenues of $1,024 million compared to operating loss of $1.93 million, loss before income taxes of $7.02 million and net loss of $4.6 million or $0.08 per diluted share on revenues of $869.8 million reported a year ago. Non-GAAP net income was $18.67 million or $0.31 per diluted share. Net cash used in operating activities was $12.16 million compared to net cash provided by operating activities of $19.11 million reported a year ago. Purchases of property and equipment was $12.20 million compared to $4.76 million reported a year ago. Net income, excluding the loss on extinguishment of debt, was up sequentially as an $18 million increase in domestic streaming contribution profit and a $28 million decrease in international losses more than offset a $14 million decline of DVD contribution profit and an increase in global operating costs. For the second quarter of 2013, the company expects to report net income of $14 million to $29 million or earnings per share of $0.23 to $0.48. The guidance implies net income roughly flat with first quarter of 2013 (absent the loss on extinguishment of debt). The company had a tax benefit in first quarter related to the retroactive reinstatement of the 2012 R&D tax credit that will not repeat in the second quarter of 2013, so higher sequential operating profit will be partially offset by higher sequential taxes. For the balance of the year, the tax rate should be between 34% and 35%.

On December 6, 2012, Netflix, Inc. and its Chief Executive Officer Reed Hastings each received a wells notice from the staff of the Securities and Exchange Commission indicating its intent to recommend that the Commission bring enforcement proceedings against Netflix and Mr. Hastings for alleged violations of Regulation Fair Disclosure, Section 13(a) of the Securities Exchange Act and Rules 13a-11 and 13a-15 thereunder. On April 2, 2013, the SEC issued a report of investigation in which it announced that the Commission has determined not to pursue an enforcement action.

Netflix, Inc. announced that they will report Q1, 2013 results at 1:05 PM, Pacific Standard Time on Apr 22, 2013