Digital River Q3 revenue down 15 per cent to $85m

Loss comes since to loss of a major client, according to CEO.

Digital River, a provider of eCommerce offerings, has reported total revenues of $85m for the third quarter of 2010, a decrease of 15 per cent compared to $99.4m for the same period last year.

The company posted an operating income of $2.5m, which is a drop of 83 per cent compared to $15m registered as operating income in same quarter previous year.

For the third quarter ended 30 September 2010, the company's net income was $6m, compared to $11m for the same period last year.
Diluted EPS for the third quarter of 2010 decreased to $0.15, compared to $0.29 for the same period last year.

Digital River CEO Joel Ronning said that since the loss of a major client last October, they have made tremendous progress delivering on their commitment to replace lost revenue and drive growth.

"The company has won major new business in software, consumer electronics and games, adding industry-leading clients to our portfolio and are in the process of launching more stores for more clients," Ronning said.

For the fourth quarter of 2010, the company expects revenue to range between $95m and $98m and diluted earnings per share to range between $0.15 and $0.18, assuming a 28 per cent tax rate.