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MINNEAPOLIS, April 29, 2010 — Digital River, Inc. (NASDAQ: DRIV),a leading provider of global e–commerce solutions, reports its first quarter financial results.
First Quarter Ended March 31, 2010:
GAAP Results
First quarter revenue totaled $98.7 million, compared to $102.9 million during the same period in 2009. These results were in line with management’s first quarter revenue guidance of $95 – $99 million. Core revenue for the first quarter, which excludes all Symantec revenue, was $81.5 million.
First quarter GAAP net income was $7.0 million, or $0.18 per diluted share. This compares to GAAP net income of $13.3 million, or $0.36 per diluted share, in the first quarter of 2009. These results exceeded management’s first quarter earnings guidance of $0.05 – $0.10 per diluted share.
Non–GAAP Results
First quarter non-GAAP net income was $11.4 million, or $0.30 per diluted share. This compares to non–GAAP net income of $20.8 million, or $0.56 per diluted share, in the first quarter of 2009. These results exceeded management’s first quarter earnings guidance of $0.18 – $0.23 per diluted share.
Non–GAAP net income is computed by starting with GAAP pre–tax income as reported on the Company’s statement of income, then adding back the write–off of debt financing costs, amortization of acquisition–related intangibles, one–time restructuring charges and stock–based compensation expense, to calculate non–GAAP pre–tax income. This amount is then taxed at 27 percent to arrive at non–GAAP net income. This amount is then divided by fully–diluted GAAP shares outstanding, which includes shares underlying the Company’s convertible senior notes, to derive non–GAAP diluted net income per share. To provide further clarity, a detailed reconciliation on the comparability of the GAAP and non–GAAP data has been provided in table form following the financial statements accompanying this release.
Today, the Company also announced an anticipated second quarter charge of approximately $2 million. The charge is primarily related to a reduction in workforce.
Forward–looking guidance for the quarter ending June 30, 2010, is as follows:
Second Quarter
Non–GAAP diluted net income per share of $0.05, assuming a 27 percent tax rate.Core revenue, (revenue excluding Symantec) is expected to increase 15 percent compared to the same period last year:
Non–GAAP diluted net income per share of $0.05, assuming a 27 percent tax rate.Revenue related to Symantec is expected to be approximately $4.5 million;
Non–GAAP diluted net income per share of $0.05, assuming a 27 percent tax rate.Restructuring charge of approximately $2 million, primarily related to a reduction in workforce;
Non–GAAP diluted net income per share of $0.05, assuming a 27 percent tax rate.GAAP diluted net loss per share of $0.12, assuming a 28 percent tax rate; and
Non–GAAP diluted net income per share of $0.05, assuming a 27 percent tax rate.Non–GAAP diluted net income per share of $0.05, assuming a 27 percent tax rate.
Digital River will hold a conference call today at 4:45 p.m. EDT to discuss first quarter financial results. A live webcast of Digital River’s earnings conference call can be accessed at http://www.digitalriver.com/investorrelations/ Alter.natively, a live broadcast of the call may be heard by using conference ID # 69894855 and dialing (877) 303–3145 inside the United States or Canada, or by calling +1 (408) 427–3861 from international locations. A webcast replay of the call will be archived on Digital River–s corporate Web site.
Digital River, Inc., a leading provider of global e–commerce solutions, builds and manages online businesses for software and game publishers, consumer electronics manufacturers, distributors, online retailers and affiliates. Its multi–channel e–commerce solution, which supports both direct and indirect sales, is designed to help companies of all sizes maximize online revenues as well as reduce the costs and risks of running an e-commerce operation. The company´s comprehensive platform offers site development and hosting, order management, fraud management, export controls, tax management, physical and digital product fulfillment, multi–lingual customer service, advanced reporting and strategic marketing services.
Founded in 1994, Digital River is headquartered in Minneapolis with offices across the U.S., Asia, Europe and South America. For more details about Digital River, visit the corporate Web site at http://www.digitalriver.com or call +1 952–253–1234.
Digital River is a registered trademark of Digital River, Inc. All other trademarks and registered trademarks are trademarks of their respective owners.