The notice informed Netflix that the SEC intends to bring a civil action against the company because of comments Hastings made on Facebook in July announcing that members of the online video streaming service were watching more than one billion hours of video a month.

Netflix Inc. NFLX +25.88% on Wednesday reported a fourth-quarter profit of $8 million, or 13 cents a share, on $945 million in revenue. During the same period a year ago, Netflix earned $35 million, or 64 cents a share, on revenue of $876 million. Analysts surveyed by FactSet had forecast Netflix to report a loss of 12 cents a share on $934.7 million in sales. The company said it added 2.05 million new U.S. video-streaming subscribers, to end 2012 with 27.15 million such customers. The company had earlier said it expected to add between 1.3 million and 2 million domestic streaming subscribers in the quarter. Netflix shares surged 25% in after-hours trading following the results.

Netflix's decision to feature original programming on its Internet video service appears to be pulling in more customers.

Numbers released Monday showed Netflix Inc. added 2 million U.S. subscribers to its video streaming service during the first three months of the year. Through March, Netflix had 29.2 million U.S. streaming subscribers.

The period was highlighted by the early February debut of "House of Cards," a critically acclaimed series made exclusively for Netflix.

The subscriber growth helped Netflix bounce back from a loss at the same time last year and generate revenue slightly above analyst projections.

The company eked out a profit of $3 million, or 5 cents per share, in the quarter. That contrasted with a loss of nearly $5 million, or 8 cents per share last year.

http://finance.yahoo.com/news/netfli...202158133.html

Netflix said that for the quarter ended June 30, it earned $29 million, or 49 cents a share, on revenue of $1.07 billion, compared with profit of 11 cents a share on $889 million in sales in the year-ago period. Analysts surveyed by FactSet had forecast Netflix to earn 40 cents a share on revenue of $1.07 billion.

However, Netflix said it added just 630,000 new U.S. video-streaming subscribers, and 1.2 million total, to give it 37.8 million subscribers world-wide at the end of the quarter. There had been some expectations that Netflix’s new subscriber numbers would be even higher, due to the launch of the new season of the original series “Arrested Development” as well as gains from the launch of the show “House of Cards” earlier this year.

Arvind Bhatia, an analyst who covers Netflix for Sterne Agee, said that with regards to new streaming subscribers, “Consensus [estimate] was for 676K net adds versus the reported 630K and I think people were expecting a beat.”

For its third quarter, Netflix forecast total subscribers between 38.5 million and 40.3 million, resulting in a range of 700,000 to 2.5 million new subscribers.

Netflix also forecasts third-quarter net income of between 30 cents and 56 cents a share, while analysts’ consensus estimate was for 42 cents a share.

http://www.marketwatch.com/story/net...ngs-2013-07-22