Software Industry Announcements and News


Digital River Announces Second Quarter 2009 Financial Results

Posted on 07.31.09 11:51AM under ASP Member Companies, Business

MINNEAPOLIS–(BUSINESS WIRE)–Digital River, Inc. (NASDAQ: DRIV), a leading provider of global e-commerce solutions, reports its second quarter financial results.

Second Quarter Ended June 30, 2009
GAAP Results
Second quarter revenue totaled $96.6 million, compared to $98.4 million during the same period in 2008. These results were consistent with management’s second quarter revenue guidance of $95 – $97 million.

Second quarter GAAP net income was $11.8 million, or $0.31 per diluted share. This compared to GAAP net income of $13.2 million, or $0.33 per diluted share, in the second quarter of 2008. These results exceeded management’s second quarter earnings guidance of $0.27 – $0.30 per diluted share.

Non-GAAP Results
Second quarter non-GAAP net income was $15.8 million, or $0.42 per diluted share. This compared to non-GAAP net income of $16.5 million, or $0.40 per diluted share, in the second quarter of 2008. These results were consistent with management’s second quarter earnings guidance of $0.39 – $0.42 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 amortization of acquisition-related intangibles 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.

“Our second quarter revenue was squarely in line with our expectations,” said Joel Ronning, Digital River’s CEO. “Even though our year-over-year results continue to be tempered by the slow economy, we remain encouraged by the growth in our sales pipeline, our new product roadmap, and our recent wins in the business-to-business software market. We are maintaining an outlook of cautious optimism for 2009.”

2009 Guidance
Forward-looking guidance for the quarter ending September 30, 2009, is as follows:

Third Quarter

* Revenue of $96.5 – $98.5 million;
* GAAP diluted net income per share of $0.26 – $0.29, assuming a 27 percent tax rate; and
* Non-GAAP diluted net income per share of $0.38 – $0.41, assuming a 27 percent tax rate.

Included in Digital River’s third quarter guidance is approximately $2 million of one-time costs related to the company’s recent restructuring activity.

Digital River will hold a conference call today at 4:30 p.m. EDT to discuss second quarter financial results. A live webcast of Digital River’s earnings conference call can be accessed at http://www.digitalriver.com/2009/q2earnings/. Alternatively, a live broadcast of the call may be heard by using conference ID # 18014101 and dialing (888) 218-6314 inside the United States or Canada, or by calling +1 (706) 634-9714 from international locations. A webcast replay of the call will be archived on Digital River’s corporate Web site.

About Digital River, Inc.
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 www.digitalriver.com or call +1 952-253-1234.


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