Digital River 4Q profit falls 17 percent

posted: 12 DAYS 15 HOURS AGO

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MINNEAPOLIS -Digital River Inc. said Thursday that its fourth-quarter profit fell 17 percent even as the provider of technology and services for companies that sell products online reported record revenue.

The company's stock fell nearly 2 percent in after-hours trading as the company issued a first-quarter forecast below Wall Street estimates.

Digital River said it made $13.6 million, or 36 cents per share, for the quarter ended Dec. 31, compared with $16.5 million, or 41 cents per share, in the year-ago quarter.

Adjusted to exclude special items, Digital River said it would have made $15.3 million, or 40 cents per share, for the most recent quarter compared with $19.8 million, or 48 cents per share, in the year-ago quarter.

Analysts surveyed by Thomson Reuters expected profit of 33 cents per share. Those estimates typically exclude one-time charges.

Revenue hit $105 million in the quarter, up from $96 million in the year-ago quarter.

The company said it expects to make 5 cents to 10 cents a share for the first quarter; 18 cents to 23 cents a share when excluding charges.

Wall Street was looking for a profit of 28 cents in the first quarter.

Digital River shares, which rose 27 cents during the regular session to $25.38, fell 43 cents to $24.95 in after-hours dealings. The shares have traded between $20.53 and $41.20 over the past year.

For the year, Digital River made $53 million, or $1.41 per share, compared with $63.6 million, or $1.55 per share, in 2008. Adjusted to exclude one-time charges, Digital River said it made $67.8 million, or $1.80 per share, compared with $78.3 million, or $1.86 per share, in 2008.

Revenue rose $404 million for the year from $394 million in 2008.

2010-01-28 18:47:22