Remains optimistic about business opportunities in core markets
Digital River, a provider of eCommerce offerings, has reported total revenues of $98.7m for the first quarter of 2010, a decrease of 4% compared to $102.9m for the same period last year, in line with management first quarter revenue guidance of $95m to $99m.
The company posted a net income of $7.0m for the quarter ended March 31, 2009, compared to $13.3m for the same period last year. Diluted EPS excluding share-based compensation expenses (non-GAAP) for the first quarter of 2010 was $0.30.
The company also announced an anticipated second quarter charge of approximately $2m. The charge is primarily related to a reduction in workforce.
Joel Ronning, CEO at Digital River, said: “We signed some great new clients during the first quarter and earnings exceeded expectations. While we had a solid first quarter, we made a commitment to our shareholders last October that we would align our cost structure with revenue in 2010 following the loss of a major customer.
Even though we took this action, we remain optimistic about the business opportunities we see in our core markets and our opportunities for growth.”
The company expects core revenue to increase 15% for the second quarter of 2010 compared to the same period last year and GAAP diluted net loss per share of $0.12, assuming a 28% tax rate.