Software Industry Announcements and News


Digital Rivers Reports Q1 Results

Posted on 05.28.11 11:01AM under ASP Member Companies, Business

Increases full year revenue and earnings guidance

MINNEAPOLIS–Digital River, Inc., a leading provider of global e-commerce solutions, reports its first quarter financial results.

First Quarter Ended March 31, 2011
GAAP Results
First quarter revenue totaled $98.2 million, compared to $98.7 million during the same period in 2010. This result was in line with management’s first quarter revenue guidance of $98 million.

First quarter GAAP net income was $7.0 million, or $0.18 per diluted share, which compared to GAAP net income of $7.0 million, or $0.18 per diluted share, in the first quarter of 2010. These results exceeded management’s first quarter earnings guidance of $0.16 per diluted share.

Non-GAAP Results
First quarter non-GAAP net income was $12.6 million, or $0.31 per diluted share. This compared to non-GAAP net income of $12.4 million, or $0.32 per diluted share, in the first quarter of 2010. The company’s results exceeded management’s first quarter earnings guidance of $0.29 per diluted share.

Non-GAAP net income is computed by starting with GAAP pre-tax income as reported on the company’s statement of operations, then adding back amortization of acquisition-related intangibles, stock-based compensation expense, unrealized investment gain or loss, and restructuring costs. This amount is then taxed at 21 percent to arrive at non-GAAP net income. Non-GAAP net income per diluted share is then calculated by adjusting non-GAAP net income, adding back debt interest expense and issuance cost amortization, net of tax benefit. This amount is then divided by fully-diluted shares outstanding 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 first quarter earnings exceeded expectations,” said Joel Ronning, Digital River’s CEO. “We saw strength across multiple geographies and vertical markets and continued to win new business in software, consumer electronics and games. At the same time, we are leveraging our World Payments solution to further diversify into markets such as e-retail, travel, entertainment and online services. We are maintaining our optimistic outlook for 2011 as evidenced by our strong second quarter revenue guidance.”

2011 Guidance
Management’s forward-looking financial expectations for the second quarter and revised full year 2011 are as follows:

For the second quarter ending June 30, 2011, management expects approximately:

For the full year ending December 31, 2011, management expects approximately:

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 on the Investor Relations section of its corporate website. Alternatively, a live broadcast of the call may be heard by using conference ID #57407867 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 website.

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 website, follow the company on Twitter or call +1 952-253-1234.


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