The two firms will become independent publicly traded companies in 2015. The move follows pressure from investor Carl Icahn to spin off the payments ...
The loss of its largest client, Symantec, was partly offset by new business from Microsoft.
Digital River Inc., which operates e-commerce sites primarily for software makers and other sellers of digital goods, reported a 10.1% decline in revenue for 2010, largely a result of its largest client, Symantec, leaving Digital River to launch its own e-commerce platform.
Growing business from Microsoft Corp. helped soften the blow. Microsoft now represents 25% of Digital River’s business, estimates Lazard Capital analyst Colin Sebastian. And with Digital River set to support a new online store for Microsoft, that percentage is likely to increase, Sebastian says.
Digital River CEO Joel Ronning described fourth quarter 2010 revenue as strong and called 2010 “one of the best years of operational execution in the history of the company.”
“We entered last year with an objective to replace 30% of our revenue after the loss of a major client and align our expenses with our growth profile,” Ronning says. “We not only accomplished that but also exited 2010 a much more diversified business. In 2011, we see more opportunity for sustainable growth across more markets than ever before and are extremely optimistic about our future.”
For all of 2010, Digital River reported:
- Revenue of $363.2 million, down 10.1% from $403.8 million in 2009.
- Net income of $15.7 million, compared with $49.8 million in 2009.
For the fourth quarter of 2010, the company reported:
- Revenue of $97.7 million, a decline of 6.9% from $104.9 million during Q4 2009.
- Net income of $5.4 million, compared with $13.6 million the previous year.
Symantec is No. 33 in the Internet Retailer Top 500 Guide.