May 4, 2010, 5:25 PM

Digital River reports a 4.1% dip in revenue in the first quarter

Digital River Inc., which provides e-commerce technology and services primarily to software companies and other retailers of digital goods, reported revenue of $98.7 million in the first quarter ended March 31, a 4.1% decline a year earlier.

Digital River Inc., which provides e-commerce technology and services primarily to software companies and other retailers of digital goods, reported revenue of $98.7 million in the first quarter ended March 31, a 4.1% decline a year earlier.

For the first quarter, the firm reported:

  • Revenue decreased 4.1%, to $98.7 million from $102.9 million a year earlier.
  • Core revenue, which excludes revenue from Symantec Corp., maker of Norton computer security software products and a major Digital River client that has announced plans to operate its own e-commerce platform when its contract with Digital River expires, was $81.5 million.
  • Net income declined 47.4%, to $7.0 million from $13.3 million a year earlier.

"We signed some great new clients during the first quarter and earnings exceeded expectations," says Joel Ronning, Digital River's CEO. "While we had a solid first quarter, we made a commitment to our shareholders last October that we would align our cost structure with revenue in 2010 following the loss of a major customer. Even though we took this action, we remain optimistic about the business opportunities we see in our core markets and our opportunities for growth."

Digital River sells services for e-commerce platforms, site development, order and fraud management, export controls, tax management, physical and digital product fulfillment and strategic marketing.

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