Wednesday, November 04, 2009

Digital River Q3 profit narrowly beats estimates

* Q3 adj EPS $0.42 vs est. $0.41

* Q3 rev $99.4 mln vs est. $98.3 mln

* Sees FY'09 rev, excl Symantec, to grow in upper teens (Adds conference call details, background)

BANGALORE, Nov 3 (Reuters) - E-commerce services provider Digital River Inc (DRIV.O) posted better-than-expected quarterly results and expects to exit 2010 with revenue growth in the upper teens, despite losing its top customer Symantec.

Digital River, however, said it does not have full visibility into Symantec's (SYMC.O) plans to move its e-commerce platform in-house and is still assessing the impact to its business.

On October 12, the company said Symantec, which accounts for nearly 30 percent of its revenue, will not extend an existing contract to manage its online traffic. [ID:nBNG159286]

For the third quarter, net income was $11 million, or 29 cents per share, compared with $15.6 million, or 39 cents per share, a year ago.

Revenue for the company, which competes with Germany's Asknet (A5AGn.DE) and GSI Commerce Inc (GSIC.O), fell 3 percent to $99.4 million. Excluding Symantec's contribution, revenue was up 8 percent.

Adjusted profit for the quarter was 42 cents per share that beat the consensus estimate by a penny.

Analysts were expecting revenue of $98.3 million, according to Thomson Reuters I/B/E/S.

For the fourth quarter, Digital River expects a profit of 18 cents to 22 cents per share.

Excluding items, it sees a profit of 30 cents to 34 cents per share on revenue of $94 million to $98 million.

Revenue related to Symantec products is expected to be between $19 million to $22 million.

Analysts are looking at a profit of 42 cents a share on revenue of $96.52 million.

Digital River's customers include CA Inc (CA.O), Microsoft Corp (MSFT.O) and Electronic Arts Inc (ERTS.O).

Last week, rival GSI Commerce posted better-than-expected quarterly results, and said it expects a modest increase in fiscal 2009 net revenue from last year.

For alerts, please double click [ID:nWNAB9365] (Reporting by Mansi Dutta in Bangalore; Editing by Anil D'Silva)

via reuters

Jason Kiwaluk

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Ideation | Ecommerce | Fintech | Innovation | Strategy | Opinionated Agitator RevenueWire,FuturePay+PayMotion

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