While e-commerce platform and services provider Digital River Inc. saw its revenue grow in the third quarter, the company’s net income slipped compared to a year ago, the company reported yesterday.
For the third quarter, Digital River reported:
- Third quarter revenue grew 3.2% to $99.4 million from $96.3 million a year earlier.
- GAAP net income dropped 29.5% to $11 million from $15.6 million a year ago.
Last month Symantec Corp., maker of Norton computer security software products and Digital River’s largest customer, announced it has begun transitioning to an internally developed and operated e-commerce platform.
Although the company was disappointed with the Symantec announcement, Digital River’s Symantec-related revenues have been steadily declining in proportion to overall revenues, said Joel Ronning, Digital River founder, chairman and CEO, in a conference call with analysts. “Symantec revenues were 34% of our total revenues in 2008 compared to 39% in 2007 and 47% in 2006,” he said. “In the third quarter of 2009 Symantec-related revenues were 29% of our total revenues compared to 33% in the third quarter of 2008. As you can see the percentage of total revenues from the Symantec business, is down significantly from a few years ago. Our efforts to expand our non-Symantec business are paying off.”
Ronning added that the company’s third quarter revenue excluding Symantec grew 8% year over year, increasing from 2% year over year in the second quarter of 2009.
Digital River provides an e-commerce platform, site development and hosting, order management, fraud management, export controls, tax management, physical and digital product fulfillment, multilingual customer service, advanced reporting and strategic marketing services.
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