Minneapolis-based Digital River (Nasdaq:DRIV), a global Commerce Service Provider, today announced that its Software and
Digital Commerce Services Division reached profitability, prior to depreciation
and amortization expenses, for the fourth quarter of 2000.
The company
anticipates reaching overall company profitability, on the same basis, in the
fourth quarter of 2001.
“This profitability milestone in the Software Services Division is a major
event for our company,” said Joel Ronning, CEO of Digital River. “By reaching
this important goal, we’ve validated the Commerce Service Provider model,” Ronning stated.
The company also announced today that it expects that it will exceed prior
expectations regarding overall fourth quarter performance. Previous company
guidance was a 25-30% sequential growth in fourth quarter revenue to $9.5 – $9.9
million, and a $0.21 per share net loss prior to goodwill amortization. The
company expects fourth quarter performance to be better than each of these
previously announced performance targets.
“Fourth quarter financial performance shows solid growth from third quarter
levels,” said Bob Strawman, chief financial officer of Digital River. “The
fourth quarter was a strong period for us due to the addition of new clients and
the expansion of services provided to existing clients in both our Software and
E-Business Services Divisions. We are seeing strong momentum as we move into
2001,” concluded Strawman.
The company will announce its fourth quarter financial results after market
close on Tuesday, January 23rd. At that time, the company will also provide full
year guidance for 2001. The fourth quarter conference call will be held at 4:45
P.M. Eastern Standard Time, with remarks from Joel Ronning, Perry Steiner and
Bob Strawman.
A live broadcast of the conference call may be heard by dialing 800-340-5808 or
via web cast through the Investor Relations page at www.digitalriver.com. A
replay of the call will be available starting at 6:45 PM Eastern Standard Time
and can be accessed by dialing 800-633-8284, reservation number 17562126.
On a separate note, the company also announced today that after nearly three years as President of
Digital River, Perry Steiner will be stepping down at the end of February. Mr.
Steiner, who is returning to his career roots in private equity investing by
joining Arlington Capital Partners in Washington, DC, will continue as a member
of the Board of Directors.
