Digital River, Inc. (NASDAQ: DRIV), a leading global provider of Commerce-as-a-Service solutions, reported financial results for the second quarter of 2014.
Second Quarter Ended June 30, 2014
GAAP Results
Second
quarter revenue totaled $87.4 million, exceeding management’s second
quarter revenue guidance of $84 to $87 million. In 2013, second quarter
revenue from continuing operations was $90.2 million.
Second quarter 2014 GAAP net loss from continuing operations was $7.3 million or a net loss of $0.24 per share, exceeding management’s second quarter GAAP guidance of a net loss from continuing operations of $0.33 to a net loss of $0.28 per share. In 2013, second quarter GAAP net loss from continuing operations was $0.2 million or a net loss of $0.01 per share.
Non-GAAP Results
Second quarter 2014 non-GAAP net
loss from continuing operations was $0.3 million or a net loss of $0.01
per share, which exceeded management’s second quarter non-GAAP guidance
of a net loss of $0.07 to a net loss of $0.03 per share. In 2013, second
quarter non-GAAP diluted net income from continuing operations was $1.8
million or $0.06 per diluted share.
“I am pleased to report that we delivered a solid second quarter and our transformation efforts are generating meaningful results across our business,” said David Dobson, Digital River’s CEO. “Driven by our commitment to expand existing client relationships, gross transaction volumes across our core commerce and payments businesses continue to increase and signal healthy growth. Moreover, our commerce infrastructure investments, which are now largely complete, continue to contribute to added gains in our commerce loyalty index. We believe the steady rise in these key indicators over time are early confirmation that our business and clients are starting to yield the benefits of our transformation plan.”
Share Repurchase
During the second quarter, the company
repurchased $14.2 million of its common stock. All transactions of
common stock took place in the open market.
Third Quarter and Full Year 2014 Guidance
Management’s
forward-looking financial expectations for the third quarter of 2014 are
as follows:
- Revenue, ranging from $87 to $90 million;
- GAAP EPS, ranging from a net loss of $0.31 to a net loss of $0.26 per share; and
- Non-GAAP EPS, ranging from a net loss of $0.05 to a net loss of $0.02 per share, using a 21 percent tax rate.
Management’s forward-looking financial expectations for the full year 2014 are as follows:
- Revenue, updated to range from $375 to $382 million;
- GAAP EPS, updated to range from a net loss of $0.63 to a net loss of $0.51 per share; and
- Non-GAAP EPS, ranging from $0.41 to $0.51 per diluted share, using a 21 percent tax rate, which is consistent with previous guidance.
A detailed table providing a reconciliation of the company’s GAAP and non-GAAP earnings guidance estimates can be found accompanying this press release.
Digital River will host an open-access audio webcast and conference call today at 4:45 p.m. EDT to discuss second quarter 2014 financial results. The live audio webcast can be accessed on the Investor Relations (www.digitalriver.com/investorrelations) section of its corporate website. Alternatively, to listen to the live broadcast of the call, dial +1 (408) 427-3861 and use conference ID #71793026. A webcast and audio replay of the presentation will be archived on Digital River’s corporate website.
About Digital River, Inc.
Backed by 20 years of ecommerce
experience, Digital River is recognized as a leading global provider of
Commerce-as-a-Service solutions. Companies of all sizes rely on Digital
River’s multi-tenant, SaaS commerce, payments and marketing services to
manage and grow their online businesses. In 2013, Digital River
processed more than $30 billion in online transactions, connecting B2B
and B2C digital products and cloud service companies as well as branded
manufacturers with buyers across multiple devices and channels, and
nearly every country in the world.
Digital River is headquartered in Minneapolis with offices across the U.S., Asia, Europe and South America. For more details about Digital River, visit the corporate website, read our Digital River blog, follow the company on Twitter or call +1 952-253-1234.
Non-GAAP Net Income Calculation
Digital River’s non-GAAP
net income (loss) from continuing operations is computed by adjusting
GAAP pre-tax income (loss) from continuing operations as reported on the
company’s statement of operations by adding back, when applicable,
amortization of acquisition-related intangibles, stock-based
compensation expense, intangible impairments, restructuring related
costs, litigation settlement related costs, acquisition and integration
costs, realized and unrealized investment gains or losses, goodwill
impairments, and one-time impacts of debt repurchases, net of a 21
percent tax rate. Non-GAAP diluted earnings per share from continuing
operations is calculated using the “if-converted” method with respect to
the issuance of the company’s Convertible Senior Notes. In computing
non-GAAP diluted earnings per share from continuing operations, if an
increase in earnings per share will not result, adjust non-GAAP net
income from continuing operations to add back debt interest and issuance
cost amortization expenses, net of the tax benefit, and then divide this
amount by fully diluted shares outstanding. This amount, representing
the fully diluted earnings computation, is selected to represent
non-GAAP diluted earnings per share from continuing operations for each
period presented. To provide further clarity, a detailed reconciliation
on the comparability of the GAAP and non-GAAP data has been provided in
table form following the financial statements accompanying this release.
Forward-Looking Statements
This press release contains
forward-looking statements, including statements regarding the company’s
anticipated future growth and future financial performance, as well as
statements containing the words “anticipates,” “believes,” “plans,”
“will,” “expects,” or “guidance” and similar words. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors, which may cause the actual results, performance or achievements
of the company, or industry results, to differ materially from those
expressed or implied by such forward-looking statements. Such factors
include, among others: the company’s operating history and variability
of operating results; competition in the commerce and payments markets;
challenges associated with international expansion; the variability of
foreign exchange rates; any breach or compromise of the company’s
security systems; our ability to successfully manage our business while
undertaking significant technical and transformational initiatives; our
ability to execute upon our payments strategy and expand our business in
this sector; our ability to achieve favorable tax rates in our
international operations; the nature, cost and outcome of pending and
future litigation and other legal proceedings; and other risk factors
referenced in the company’s public filings with the Securities and
Exchange Commission, including the Annual Report on Form 10-K for the
year ended Dec. 31, 2013. The financial information contained in this
release should be read in conjunction with the consolidated financial
statements and notes thereto included in Digital River’s most recent
reports on Form 10-K and Form 10-Q, each as it may be amended from
time-to-time.
The forward-looking statements reflect management’s expectations as of July 30, 2014. Results may be materially affected by many factors, such as changes in global conditions in the financial services markets and consumer spending, fluctuations in foreign currency rates, the rate of growth of online commerce and online payments, progress with key partners, and other factors. The guidance assumes, among other things, that there are no material changes to stock-based compensation expense and anticipated tax rates. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management’s analysis only as of the date hereof. The company undertakes no obligation to update these forward-looking statements or future guidance to reflect events or circumstances that may arise after the date hereof.
Digital River is a registered trademark of Digital River, Inc. All other trademarks and registered trademarks are trademarks of their respective owners.
Digital River, Inc. | ||||||||
Second Quarter Results | ||||||||
(Unaudited, in thousands, except share data) | ||||||||
Subject to reclassification | ||||||||
Consolidated Balance Sheets | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 225,226 | $ | 483,868 | ||||
Short-term investments | 166,863 | 115,652 | ||||||
Accounts receivable, net of allowance of $2,987 and $3,206 | 58,994 | 70,865 | ||||||
Deferred tax assets | 1,552 | 1,479 | ||||||
Prepaid expenses and other | 23,406 | 27,878 | ||||||
Total current assets | 476,041 | 699,742 | ||||||
Property and equipment, net | 48,719 | 53,770 | ||||||
Goodwill | 138,757 | 139,318 | ||||||
Intangible assets, net | 24,631 | 29,217 | ||||||
Long-term investments | 53,074 | 56,023 | ||||||
Deferred income taxes | 1,174 | 1,037 | ||||||
Other assets | 993 | 2,067 | ||||||
Total assets | $ | 743,389 | $ | 981,174 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 167,554 | $ | 187,635 | ||||
Accrued payroll | 15,203 | 20,058 | ||||||
Deferred revenue | 5,052 | 6,904 | ||||||
Other current liabilities | 41,084 | 55,899 | ||||||
Total current liabilities | 228,893 | 270,496 | ||||||
Non-current liabilities | ||||||||
Convertible senior notes | 135,180 | 295,795 | ||||||
Other liabilities | 21,810 | 21,452 | ||||||
Total non-current liabilities | 156,990 | 317,247 | ||||||
Total liabilities | 385,883 | 587,743 | ||||||
Stockholders' equity | ||||||||
Preferred stock, $.01 par value; 5,000,000 shares authorized; no shares issued or outstanding | - | - | ||||||
Common stock, $.01 par value; 120,000,000 shares authorized; 50,797,206 and 50,074,977 shares issued | 508 | 501 | ||||||
Treasury stock at cost; 18,817,940 and 16,910,883 shares | (456,644 | ) | (424,416 | ) | ||||
Additional paid-in capital | 771,207 | 761,560 | ||||||
Retained earnings | 38,436 | 51,254 | ||||||
Accumulated other comprehensive income (loss) | 3,999 | 4,532 | ||||||
Stockholders' equity | 357,506 | 393,431 | ||||||
Total liabilities and stockholders' equity | $ | 743,389 | $ | 981,174 | ||||
Digital River, Inc. | ||||||||||||||||
Second Quarter Results | ||||||||||||||||
(Unaudited, in thousands, except per share amounts) | ||||||||||||||||
Subject to reclassification | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue | $ | 87,386 | $ | 90,163 | $ | 185,193 | $ | 201,184 | ||||||||
Costs and expenses (exclusive of depreciation and amortization expense shown separately below): | ||||||||||||||||
Direct cost of services | 16,819 | 17,061 | 34,971 | 39,067 | ||||||||||||
Network and infrastructure | 13,858 | 14,326 | 27,937 | 29,401 | ||||||||||||
Sales and marketing | 24,223 | 25,946 | 48,525 | 55,402 | ||||||||||||
Product research and development | 18,650 | 17,611 | 36,923 | 34,859 | ||||||||||||
General and administrative | 12,322 | 13,682 | 24,641 | 32,029 | ||||||||||||
Goodwill impairment | - | - | - | 21,249 | ||||||||||||
Depreciation and amortization | 6,510 | 5,066 | 12,868 | 10,066 | ||||||||||||
Amortization of acquisition-related intangibles | 2,186 | 2,283 | 4,357 | 4,211 | ||||||||||||
Total costs and expenses | 94,568 | 95,975 | 190,222 | 226,284 | ||||||||||||
Income (loss) from operations | (7,182 | ) | (5,812 | ) | (5,029 | ) | (25,100 | ) | ||||||||
Interest income | 647 | 780 | 1,266 | 1,376 | ||||||||||||
Interest expense | (890 | ) | (1,964 | ) | (2,497 | ) | (3,942 | ) | ||||||||
Other income (expense), net | 119 | 6,109 | (204 | ) | 17,013 | |||||||||||
Loss on extinguishment of debt | - | - | (5,605 | ) | - | |||||||||||
Income (loss) from continuing operations before income taxes | (7,306 | ) | (887 | ) | (12,069 | ) | (10,653 | ) | ||||||||
Income tax expense (benefit) | (31 | ) | (684 | ) | 923 | 237 | ||||||||||
Income (loss) from continuing operations | (7,275 | ) | (203 | ) | (12,992 | ) | (10,890 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | 41 | (669 | ) | 174 | (1,347 | ) | ||||||||||
Net Income (loss) | $ | (7,234 | ) | $ | (872 | ) | $ | (12,818 | ) | $ | (12,237 | ) | ||||
Income (loss) per share - basic | ||||||||||||||||
Income (loss) from continuing operations | $ | (0.24 | ) | $ | (0.01 | ) | $ | (0.43 | ) | $ | (0.33 | ) | ||||
Income (loss) from discontinued operations | 0.00 | (0.02 | ) | 0.01 | (0.04 | ) | ||||||||||
Net income (loss) per share - basic | $ | (0.24 | ) | $ | (0.03 | ) | $ | (0.42 | ) | $ | (0.37 | ) | ||||
Income (loss) per share - diluted | ||||||||||||||||
Income (loss) from continuing operations | $ | (0.24 | ) | $ | (0.01 | ) | $ | (0.43 | ) | $ | (0.33 | ) | ||||
Income (loss) from discontinued operations | 0.00 | (0.02 | ) | 0.01 | (0.04 | ) | ||||||||||
Net income (loss) per share - diluted | $ | (0.24 | ) | $ | (0.03 | ) | $ | (0.42 | ) | $ | (0.37 | ) | ||||
Shares used in per share calculation - basic | 29,837 | 32,478 | 30,395 | 32,816 | ||||||||||||
Shares used in per share calculation - diluted | 29,837 | 32,478 | 30,395 | 32,816 | ||||||||||||
Calculation of GAAP Diluted Net Income (Loss) Per Share | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
GAAP net income (loss) | $ | (7,234 | ) | $ | (872 | ) | $ | (12,818 | ) | $ | (12,237 | ) | ||||
Add back debt interest expense and issuance cost amortization, net of tax benefit | - | - | - | - | ||||||||||||
Adjusted net income (loss) for GAAP EPS calculation | $ | (7,234 | ) | $ | (872 | ) | $ | (12,818 | ) | $ | (12,237 | ) | ||||
Net income (loss) per share - diluted | $ | (0.24 | ) | $ | (0.03 | ) | $ | (0.42 | ) | $ | (0.37 | ) | ||||
Shares used in per share calculation - diluted | 29,837 | 32,478 | 30,395 | 32,816 | ||||||||||||
Digital River, Inc. | ||||||||
Second Quarter Results | ||||||||
(Unaudited, in thousands) | ||||||||
Subject to reclassification | ||||||||
Consolidated Statements of Cash Flows | ||||||||
Six months ended | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Operating Activities: | ||||||||
Net income (loss) | $ | (12,818 | ) | $ | (12,237 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Loss (gain) on disposal of discontinued operations | (275 | ) | - | |||||
Amortization of acquisition-related intangibles | 4,357 | 4,211 | ||||||
Provision for doubtful accounts | (164 | ) | 928 | |||||
Depreciation and amortization | 12,868 | 10,118 | ||||||
Impairment of goodwill | - | 21,249 | ||||||
Debt issuance cost amortization | 538 | 855 | ||||||
Amortization of investment premiums | 743 | 1,524 | ||||||
Loss (gain) on disposal of equipment | (358 | ) | 69 | |||||
Gain on sale of investment | - | (17,526 | ) | |||||
Loss on extinguishment of debt | 5,605 | - | ||||||
Stock-based compensation expense | 8,654 | 11,954 | ||||||
Deferred and other income taxes | (440 | ) | (1,765 | ) | ||||
Change in operating assets and liabilities (net of acquisitions): | ||||||||
Accounts receivable | 12,031 | (9,577 | ) | |||||
Prepaid and other assets | 2,334 | 1,843 | ||||||
Accounts payable | (18,944 | ) | (70,292 | ) | ||||
Deferred revenue | (2,208 | ) | (1,460 | ) | ||||
Income tax payable | 192 | 175 | ||||||
Other current liabilities | (9,444 | ) | (4,000 | ) | ||||
Net cash provided by (used in) operating activities | 2,671 | (63,931 | ) | |||||
Investing Activities: | ||||||||
Purchases of investments | (164,363 | ) | (53,243 | ) | ||||
Sales of investments | 117,057 | 66,847 | ||||||
Cash received (paid) for cost method investments | (658 | ) | 39,636 | |||||
Cash paid for acquisitions, net of cash received | - | (55,843 | ) | |||||
Proceeds from sale of equipment | 532 | - | ||||||
Purchases of equipment and capitalized software | (8,152 | ) | (13,167 | ) | ||||
Net cash provided by (used in) investing activities | (55,584 | ) | (15,770 | ) | ||||
Financing Activities: | ||||||||
Repurchase of senior convertible notes | (173,298 | ) | (5,354 | ) | ||||
Exercise of stock options | - | 1,273 | ||||||
Sales of common stock under employee stock purchase plan | 1,020 | 1,183 | ||||||
Repurchase of common stock | (28,209 | ) | (31,238 | ) | ||||
Repurchase of restricted stock to satisfy tax withholding obligation | (4,039 | ) | (4,261 | ) | ||||
Net cash provided by (used in) financing activities | (204,526 | ) | (38,397 | ) | ||||
Effect of exchange rate changes on cash | (1,203 | ) | (1,906 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (258,642 | ) | (120,004 | ) | ||||
Cash and cash equivalents, beginning of period | 483,868 | 542,851 | ||||||
Cash and cash equivalents, end of period | $ | 225,226 | $ | 422,847 | ||||
Cash paid for interest on convertible senior notes | $ | 2,509 | $ | 3,068 | ||||
Cash paid for income taxes | $ | 2,584 | $ | 1,357 | ||||
Digital River, Inc. | ||||||||||||||||||||
GAAP to non-GAAP Reconciliations | ||||||||||||||||||||
(Unaudited, in thousands, except per share amounts) | ||||||||||||||||||||
UTILIZING 21% EFFECTIVE INCOME TAX RATE | ||||||||||||||||||||
Twelve months | ||||||||||||||||||||
Three months ended | ended | |||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||
2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||
GAAP pre-tax income (loss) from continuing operations | $ | (9,766 | ) | $ | (887 | ) | $ | (8,241 | ) | $ | (543 | ) | $ | (19,437 | ) | |||||
Add back amortization of acquisition-related intangibles | 1,928 | 2,283 | 2,149 | 2,183 | 8,543 | |||||||||||||||
Add back stock-based compensation expense | 5,575 | 6,379 | 4,341 | 4,273 | 20,568 | |||||||||||||||
Add back restructuring related costs | 2,808 | 424 | 395 | 2,164 | 5,791 | |||||||||||||||
Add back litigation settlement related costs | - | 312 | - | 45 | 357 | |||||||||||||||
Add back acquisition and integration costs | 4,532 | 269 | 94 | 806 | 5,701 | |||||||||||||||
Add back realized investment loss (gain) | (11,067 | ) | (6,459 | ) | - | - | (17,526 | ) | ||||||||||||
Add back goodwill impairment | 21,249 | - | - | - | 21,249 | |||||||||||||||
Subtotal | 15,259 | 2,321 | (1,262 | ) | 8,928 | 25,246 | ||||||||||||||
Income tax expense (benefit) @ 21% | 3,204 | 487 | (264 | ) | 1,875 | 5,302 | ||||||||||||||
Non-GAAP income (loss) from continuing operations | 12,055 | 1,834 | (998 | ) | 7,053 | 19,944 | ||||||||||||||
Add back debt interest expense and issuance cost amortization, net of tax benefit | 1,233 | - | - | 1,214 | 79 | |||||||||||||||
Adjusted income (loss) from continuing operations for non-GAAP EPS calculation | $ | 13,288 | $ | 1,834 | $ | (998 | ) | $ | 8,267 | $ | 20,023 | |||||||||
Non-GAAP income (loss) from continuing operations per share - diluted | $ | 0.33 | $ | 0.06 | $ | (0.03 | ) | $ | 0.22 | $ | 0.61 | |||||||||
Shares used in per share calculation - diluted | 39,767 | 32,739 | 31,487 | 37,709 | 32,744 | |||||||||||||||
Six months | ||||||||||||||||||||
Three months ended | ended | |||||||||||||||||||
March 31, | June 30, | June 30, | ||||||||||||||||||
2014 | 2014 | 2014 | ||||||||||||||||||
GAAP pre-tax income (loss) from continuing operations | $ | (4,763 | ) | $ | (7,306 | ) | $ | (12,069 | ) | |||||||||||
Add back amortization of acquisition-related intangibles | 2,171 | 2,186 | 4,357 | |||||||||||||||||
Add back stock-based compensation expense | 3,988 | 4,666 | 8,654 | |||||||||||||||||
Add back restructuring related costs | 221 | 116 | 337 | |||||||||||||||||
Add back litigation settlement related costs | 599 | - | 599 | |||||||||||||||||
Add back loss on extinguishment of debt | 5,605 | - | 5,605 | |||||||||||||||||
Subtotal | 7,821 | (338 | ) | 7,483 | ||||||||||||||||
Income tax expense (benefit) @ 21% | 1,642 | (71 | ) | 1,571 | ||||||||||||||||
Non-GAAP income (loss) from continuing operations | 6,179 | (267 | ) | 5,912 | ||||||||||||||||
Add back debt interest expense and issuance cost amortization, net of tax benefit | - | - | - | |||||||||||||||||
Adjusted income (loss) from continuing operations for non-GAAP EPS calculation | $ | 6,179 | $ | (267 | ) | $ | 5,912 | |||||||||||||
Non-GAAP income (loss) from continuing operations per share - diluted | $ | 0.20 | $ | (0.01 | ) | $ | 0.19 | |||||||||||||
Shares used in per share calculation - diluted | 31,418 | 29,837 | 30,888 |
Digital River, Inc. | ||||||||||||||
Non-GAAP Reconciliations | ||||||||||||||
(Unaudited, in thousands) | ||||||||||||||
Breakdown of stock-based compensation expense | ||||||||||||||
Six months | ||||||||||||||
Three months ended | ended | |||||||||||||
March 31, | June 30, | June 30, | ||||||||||||
2014 | 2014 | 2014 | ||||||||||||
Direct cost of services | $ | 44 | $ | 40 | $ | 84 | ||||||||
Network and infrastructure | 382 | 365 | 747 | |||||||||||
Sales and marketing | 1,002 | 1,575 | 2,577 | |||||||||||
Product research and development | 912 | 809 | 1,721 | |||||||||||
General and administrative | 1,648 | 1,877 | 3,525 | |||||||||||
Total | $ | 3,988 | $ | 4,666 | $ | 8,654 | ||||||||
Breakdown of restructuring related costs | ||||||||||||||
Six months | ||||||||||||||
Three months ended | ended | |||||||||||||
March 31, | June 30, | June 30, | ||||||||||||
2014 | 2014 | 2014 | ||||||||||||
Direct cost of services | $ | - | $ | - | $ | - | ||||||||
Network and infrastructure | 21 | (14 | ) | 7 | ||||||||||
Sales and marketing | 95 | 30 | 125 | |||||||||||
Product research and development | 8 | 8 | 16 | |||||||||||
General and administrative | 97 | 92 | 189 | |||||||||||
Total | $ | 221 | $ | 116 | $ | 337 | ||||||||
Breakdown of litigation settlement related costs | ||||||||||||||
Six months | ||||||||||||||
Three months ended | ended | |||||||||||||
March 31, | June 30, | June 30, | ||||||||||||
2014 | 2014 | 2014 | ||||||||||||
Direct cost of services | $ | - | $ | - | $ | - | ||||||||
Network and infrastructure | - | - | - | |||||||||||
Sales and marketing | - | - | - | |||||||||||
Product research and development | - | - | - | |||||||||||
General and administrative | 599 | - | 599 | |||||||||||
Total | $ | 599 | $ | - | $ | 599 | ||||||||
Digital River, Inc. | |||||||||||||||||||
Non-GAAP Guidance | |||||||||||||||||||
(Unaudited, in millions except per share amounts) | |||||||||||||||||||
Revenue Guidance Table | |||||||||||||||||||
2013 Actual | |||||||||||||||||||
Twelve months | |||||||||||||||||||
Three months ended | ended | ||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | |||||||||||||||
2013 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||
Commerce | $ | 96.4 | $ | 73.8 | $ | 72.1 | $ | 84.3 | $ | 326.6 | |||||||||
Payments | 14.6 | 16.4 | 15.2 | 16.9 | 63.1 | ||||||||||||||
Total Revenue | $ | 111.0 | $ | 90.2 | $ | 87.3 | $ | 101.2 | $ | 389.7 | |||||||||
2014 Actual | |||||||||||||||||||
Six months | |||||||||||||||||||
Three months ended | ended | ||||||||||||||||||
March 31, | June 30, | June 30, | |||||||||||||||||
2014 | 2014 | 2014 | |||||||||||||||||
Commerce | $ | 80.3 | $ | 71.2 | $ | 151.5 | |||||||||||||
Payments | 17.5 | 16.2 | 33.7 | ||||||||||||||||
Total Revenue | $ | 97.8 | $ | 87.4 | $ | 185.2 | |||||||||||||
2014 Guidance | |||||||||||||||||||
Q3 2014 | FY 2014 | ||||||||||||||||||
Low Guidance | High Guidance | Low Guidance | High Guidance | ||||||||||||||||
Expected Revenue | $ | 87.0 | $ | 90.0 | $ | 375.0 | $ | 382.0 | |||||||||||
Non-GAAP Guidance Reconciliation | |||||||||||||||||||
Q3 2014 | FY 2014 | ||||||||||||||||||
Low Guidance | High Guidance | Low Guidance | High Guidance | ||||||||||||||||
Expected GAAP net income (loss) per share from continuing operations - diluted | $ | (0.31 | ) | $ | (0.26 | ) | $ | (0.63 | ) | $ | (0.51 | ) | |||||||
Add back amortization of acquisition-related intangibles, net of tax | 0.06 | 0.06 | 0.22 | 0.22 | |||||||||||||||
Add back stock-based compensation expense, net of tax | 0.13 | 0.13 | 0.48 | 0.48 | |||||||||||||||
Add back restructuring related costs, net of tax | - | - | 0.01 | 0.01 | |||||||||||||||
Add back loss on extinguishment of debt, net of tax | - | - | 0.14 | 0.14 | |||||||||||||||
Add back litigation settlement related costs, net of tax | - | - | 0.02 | 0.02 | |||||||||||||||
Tax variability | 0.07 | 0.05 | 0.17 | 0.15 | |||||||||||||||
Expected non-GAAP diluted net income (loss) per share | $ | (0.05 | ) | $ | (0.02 | ) | $ | 0.41 | $ | 0.51 | |||||||||
Projected Shares Used in Per Share Calculation | |||||||||||||||||||
Q3 2014 | FY 2014 | ||||||||||||||||||
Low Guidance | High Guidance | Low Guidance | High Guidance | ||||||||||||||||
Shares used in per share calculation - GAAP diluted | 29,760 | 29,760 | 29,962 | 29,962 | |||||||||||||||
Shares used in per share calculation - non-GAAP diluted | 29,760 | 29,760 | 30,509 | 30,509 |
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Melissa
Fisher, +1 952-225-3351
Vice President, Corporate Development,
Investor
Relations and Treasury
investorrelations@digitalriver.com
or
Media
Relations Contact:
Gerri Dyrek, +1 952-225-3719
Group Vice
President, Corporate Communications
publicrelations@digitalriver.com