Digital River Achieves First Profitability Milestone
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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.