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Digital River Q2 revenue falls 15.3%
The vendor’s revenue fell from $96.6 million to $81.8 million.
Digital River Inc., which provides e-commerce technology and services primarily to software companies and other retailers of digital goods, reported revenue of $81.8 million in the second quarter ended June 30, a 15.3% decline from a year earlier.
Digital River had announced last fall that its biggest client, security software retailer Symantec, would end its contract with Digital River effective June 30, 2010. Symantec has been moving to its own system for several months, reducing the fees it pays Digital River.
For the second quarter, the firm reported:
• Revenue decreased 15.3%, to $81.8 million from $96.6 million a year earlier.
• A net loss of $2.5 million, compared to an $11.8 million gain a year ago that reflects a one-time restructuring charge of roughly $2 million due to a reduction in workforce.
For the first half of 2010, the firm reported:
• Revenue of $180.6 million, a 9.5% dip from $199.5 million a year ago.
• Net income of $4.5 million, down 82.1% from $25.1 million a year earlier.
"In the second quarter, we continued to close new business with industry-leading brands and expanded our partnerships with some strategic clients," says Joel Ronning, CEO. "Looking into the back half of 2010 and beyond, we remain encouraged by our growing opportunities in the software, consumer electronics and games markets and expect to enter 2011 with an even stronger growth profile."
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.