Expects diluted earnings per share to be $0.16 for Q1 2011
Digital River, a provider of eCommerce offerings, has reported total revenues of $97.7m for the fourth quarter of 2010, a decrease of 7% compared to $104.9m for the same period last year.
The company posted an operating income of $7.9m, which is a drop of 40% compared to $13.1m registered as operating income in same quarter previous year.
For the fourth quarter ended December 31 2010, the company’s net income was $5.4m, compared to $13.6m for the same period last year.
Diluted EPS for the fourth quarter of 2010 decreased to $0.14, from $0.36 for the same period last year.
For fiscal year 2010, the company’s net revenues decreased to $363.1m from $403.8m; income from operations decreased to $13m from $63.5m in the previous fiscal year.
Net income and EPS were down to $15.7m and $0.41, from net income and EPS of $49.8m and $1.32 in the previous fiscal year.
Digital River CEO Joel Ronning said the company entered last year with an objective to replace 30 percent of their revenue after the loss of a major client and align their expenses with their growth profile.
"We not only accomplished that but also exited 2010 a much more diversified business and in 2011, we see more opportunity for sustainable growth across more markets than ever before and are extremely optimistic about our future," Ronning said.
For the first quarter of 2011, the company expects revenues to be $98m and diluted earnings per share to be $0.16.