Attached files
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| 8-K - DIGITAL RIVER, INC. 8-K - DIGITAL RIVER INC /DE | a50681012.htm |
Exhibit 99.1
Digital River Reports Second Quarter 2013 Financial Results
Announces Investor Day on September 19th in New York City
- Delivered second quarter revenue of $92.5 million, exceeding expectations;
- Grew organic payments revenue at a 60-plus percent growth rate for the third consecutive quarter;
- Reiterated 2013 full year revenue growth of two percent to five percent and non-GAAP EPS ranging from $0.55 to $0.65; raises full year GAAP guidance;
- Continued to win and expand key customer relationships in commerce and payments; and
- Made progress on strategic transformation to drive sustainable growth and value creation.
MINNEAPOLIS--(BUSINESS WIRE)--July 30, 2013--Digital River, Inc. (NASDAQ: DRIV) today reported financial results for its second quarter of 2013.
Second Quarter Ended June 30, 2013
GAAP Results
Second
quarter revenue totaled $92.5 million, compared to $90.8 million during
the same period in 2012. This result exceeded management’s second
quarter revenue guidance of $89 to $92 million.
Second quarter GAAP net loss was $0.9 million or a net loss of $0.03 per share, which compared to GAAP net income of $0.2 million or $0.01 per diluted share in the second quarter of 2012. These results were improved by a realized gain from the sale of an investment and exceeded management’s second quarter GAAP guidance, which ranged from a net loss of $0.31 to a net loss of $0.27 per share.
Non-GAAP Results
Second quarter non-GAAP net income was
$1.4 million or $0.04 per diluted share, compared to $6.9 million, or
$0.20 per diluted share in the second quarter of 2012. These results
were in line with management’s second quarter non-GAAP earnings
guidance, which ranged from $0.01 to $0.04 per diluted share.
“We reported solid financial results in the second quarter, exceeding revenue expectations and delivering earnings at the high end of our guidance range. Our payments revenue continues to be a major contributor to our top line growth,” said David Dobson, Digital River’s CEO. “In addition, we made good progress on our strategic transformation, advancing toward an open API-driven commerce-as-a-service, expanding our partner ecosystem and preparing for the launch of a state-of-the-art data center to better serve our global customers. Our transformation is on track, and increasing the value we deliver for our customers and shareholders remains our top priority.”
During the second quarter, the company repurchased approximately $20.1 million of common stock and $4.0 million of its two percent convertible notes. All transactions took place in the open market.
Third Quarter and Full Year 2013 Guidance
Management’s
forward-looking financial expectations for the third quarter of 2013 are
as follows:
- Revenue, ranging from $88 to $92 million;
- GAAP net loss, ranging from a net loss of $0.38 to a net loss of $0.31 per share; and finally
- Non-GAAP net loss, ranging from a net loss of $0.10 to a net loss of $0.05 per share, including a tax rate benefit of 21 percent.
Management’s forward-looking financial expectations for the full year 2013 are as follows:
- Revenue growth of two percent to five percent;
- GAAP net loss, ranging from a net loss of $0.67 to a net loss of $0.54 per share. This is an improvement compared to the company’s previous guidance, which ranged from a net loss of $0.90 to a net loss of $0.77 per share; and finally
- Non-GAAP EPS, ranging from $0.55 to $0.65 per diluted share, using a 21 percent tax rate.
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 hold a conference call today at 4:45 p.m. EDT to discuss second quarter financial results. A live webcast of Digital River’s earnings conference call can be accessed on the Investor Relations section of its corporate website. Alternatively, a live broadcast of the call may be heard by using conference ID 15758804 and dialing +1 (408) 427-3861. A webcast replay of the call will be archived on Digital River’s corporate website.
Investor Day
Digital River will host an investor day Thursday,
Sept. 19, 2013, in New York City. Key members of Digital River’s
management team will deliver presentations beginning at 1:00 p.m. EDT. A
live webcast of the event can be accessed at Digital River’s website. A
replay will be available after the event. Those interested in attending
are asked to pre-register with Digital River. Space for the event is
limited.
About Digital River, Inc.
Digital River, Inc. builds and
manages online businesses for software and game publishers, consumer
electronics manufacturers, distributors, online retailers and
affiliates. Its multi-channel commerce solution, which supports both
direct and indirect sales, is designed to help companies of all sizes
maximize online revenues as well as reduce the costs and risks of
running a global commerce operation. The company’s comprehensive
platform offers site development and hosting, order management, global
payments, cloud-based billing, fraud management, export controls, tax
management, physical and digital product fulfillment, multi-lingual
customer service, advanced reporting and strategic marketing services.
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, call +1 952-253-1234, or follow the company on Twitter.
Non-GAAP Net Income Calculation
Digital River’s non-GAAP
net income (loss) is computed by adjusting GAAP pre-tax income 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, and goodwill
impairments, net of a 21 percent tax rate. Non-GAAP diluted earnings per
share is calculated using the “if-converted” method with respect to the
issuance of the company’s 2004 and 2010 convertible notes. In computing
non-GAAP diluted earnings per share, if an increase in earnings per
share will not result, adjust non-GAAP net income 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 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 internal investments; 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;
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, 2012. 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 for fiscal 2013 reflect management’s expectations as of July 30, 2013. 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 | ||||||||
| (In thousands, except share data) | ||||||||
| Subject to reclassification | ||||||||
| Consolidated Balance Sheets | (Unaudited) | |||||||
| June 30, | December 31, | |||||||
| 2013 | 2012 | |||||||
|
Assets |
||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 422,847 | $ | 542,851 | ||||
| Short-term investments | 147,351 | 162,794 | ||||||
| Accounts receivable, net of allowance of $6,159 and $5,400 | 64,787 | 60,656 | ||||||
| Deferred tax assets | 416 | 457 | ||||||
| Prepaid expenses and other | 34,092 | 33,714 | ||||||
| Total current assets | 669,493 | 800,472 | ||||||
| Property and equipment, net | 56,200 | 53,265 | ||||||
| Goodwill | 138,307 | 108,960 | ||||||
| Intangible assets, net of accumulated amortization of $94,765 and $91,059 | 33,747 | 11,718 | ||||||
| Long-term investments | 52,575 | 71,735 | ||||||
| Deferred income taxes | 888 | 1,724 | ||||||
| Other assets | 2,942 | 4,342 | ||||||
| Total assets | $ | 954,152 | $ | 1,052,216 | ||||
|
Liabilities and stockholders' equity |
||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 134,553 | $ | 205,377 | ||||
| Accrued payroll | 14,140 | 11,630 | ||||||
| Deferred revenue | 13,550 | 13,426 | ||||||
| Other accrued liabilities | 61,717 | 51,640 | ||||||
| Total current liabilities | 223,960 | 282,073 | ||||||
| Non-current liabilities | ||||||||
| Convertible senior notes | 304,555 | 309,909 | ||||||
| Other liabilities | 23,146 | 18,236 | ||||||
| Total non-current liabilities | 327,701 | 328,145 | ||||||
| Total liabilities | 551,661 | 610,218 | ||||||
| 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; 50,023,146 and 48,941,402 shares issued | 500 | 489 | ||||||
| Treasury stock at cost; 15,771,730 and 13,581,889 shares | (404,220 | ) | (368,721 | ) | ||||
| Additional paid-in capital | 751,898 | 737,499 | ||||||
| Retained earnings | 63,664 | 75,901 | ||||||
| Accumulated other comprehensive loss | (9,351 | ) | (3,170 | ) | ||||
| Stockholders' equity | 402,491 | 441,998 | ||||||
| Total liabilities and stockholders' equity | $ | 954,152 | $ | 1,052,216 | ||||
| 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, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenue | $ | 92,471 | $ | 90,774 | $ | 206,164 | $ | 193,217 | ||||||||
| Costs and expenses (exclusive of depreciation and amortization expense shown separately below): | ||||||||||||||||
| Direct cost of services | 17,585 | 16,125 | 40,525 | 34,547 | ||||||||||||
| Network and infrastructure | 14,490 | 12,932 | 29,751 | 25,689 | ||||||||||||
| Sales and marketing | 27,222 | 27,204 | 58,056 | 55,932 | ||||||||||||
| Product research and development | 18,156 | 15,416 | 35,955 | 31,419 | ||||||||||||
| General and administrative | 14,293 | 11,414 | 32,921 | 23,584 | ||||||||||||
| Goodwill impairment | - | - | 21,249 | - | ||||||||||||
| Depreciation and amortization | 5,088 | 4,950 | 10,118 | 10,289 | ||||||||||||
| Amortization of acquisition-related intangibles | 2,283 | 1,743 | 4,211 | 3,592 | ||||||||||||
| Total costs and expenses | 99,117 | 89,784 | 232,786 | 185,052 | ||||||||||||
| Income (loss) from operations | (6,646 | ) | 990 | (26,622 | ) | 8,165 | ||||||||||
| Interest income | 780 | 996 | 1,376 | 2,135 | ||||||||||||
| Interest expense | (1,964 | ) | (2,254 | ) | (3,942 | ) | (4,494 | ) | ||||||||
| Other income (expense), net | 6,100 | 1,030 | 17,014 | 733 | ||||||||||||
| Income (loss) before income taxes | (1,730 | ) | 762 | (12,174 | ) | 6,539 | ||||||||||
| Income tax expense (benefit) | (858 | ) | 562 | 63 | 1,602 | |||||||||||
| Net income (loss) | $ | (872 | ) | $ | 200 | $ | (12,237 | ) | $ | 4,937 | ||||||
| Net income (loss) per share - basic | $ | (0.03 | ) | $ | 0.01 | $ | (0.37 | ) | $ | 0.15 | ||||||
| Net income (loss) per share - diluted | $ | (0.03 | ) | $ | 0.01 | $ | (0.37 | ) | $ | 0.15 | ||||||
| Shares used in per share calculation - basic | 32,478 | 33,453 | 32,816 | 33,629 | ||||||||||||
| Shares used in per share calculation - diluted | 32,478 | 33,561 | 32,816 | 33,821 | ||||||||||||
| Calculation of GAAP Diluted Net Income (Loss) Per Share | ||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| GAAP net income (loss) | $ | (872 | ) | $ | 200 | $ | (12,237 | ) | $ | 4,937 | ||||||
| Add back debt interest expense and issuance cost amortization, net of tax benefit | - | - | - | - | ||||||||||||
| Adjusted net income (loss) for GAAP EPS calculation | $ | (872 | ) | $ | 200 | $ | (12,237 | ) | $ | 4,937 | ||||||
| Net income (loss) per share - diluted | $ | (0.03 | ) | $ | 0.01 | $ | (0.37 | ) | $ | 0.15 | ||||||
| Shares used in per share calculation - diluted | 32,478 | 33,561 | 32,816 | 33,821 | ||||||||||||
| Digital River, Inc. | ||||||||
| Second Quarter Results | ||||||||
| (Unaudited, in thousands) | ||||||||
| Subject to reclassification | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| Six months ended | ||||||||
| June 30, | ||||||||
| 2013 | 2012 | |||||||
|
Operating Activities: |
||||||||
| Net income (loss) | $ | (12,237 | ) | $ | 4,937 | |||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Amortization of acquisition-related intangibles | 4,211 | 3,592 | ||||||
| Provision for doubtful accounts | 928 | 900 | ||||||
| Depreciation and amortization | 10,118 | 10,289 | ||||||
| Impairment of goodwill | 21,249 | - | ||||||
| Debt issuance cost amortization | 855 | 987 | ||||||
| Amortization of investment premiums | 1,524 | - | ||||||
| Loss on sale of equipment | 69 | - | ||||||
| Gain on sale of investment | (17,526 | ) | - | |||||
| Stock-based compensation expense | 11,954 | 12,192 | ||||||
| Excess tax benefits from stock-based compensation | - | (103 | ) | |||||
| Deferred and other income taxes | (1,765 | ) | 48 | |||||
| Change in operating assets and liabilities (net of acquisitions): | ||||||||
| Accounts receivable | (9,577 | ) | (8,434 | ) | ||||
| Prepaid and other assets | 1,843 | (5,598 | ) | |||||
| Accounts payable | (70,292 | ) | (72,606 | ) | ||||
| Deferred revenue | (1,460 | ) | 4,917 | |||||
| Income tax payable | 175 | 2,061 | ||||||
| Other accrued liabilities | (4,000 | ) | (5,029 | ) | ||||
| Net cash provided by (used in) operating activities | (63,931 | ) | (51,847 | ) | ||||
|
Investing Activities: |
||||||||
| Purchases of investments | (53,243 | ) | (80,602 | ) | ||||
| Sales of investments | 66,847 | 88,501 | ||||||
| Cash received for cost method investments | 39,636 | - | ||||||
| Cash paid for acquisitions, net of cash received | (55,843 | ) | - | |||||
| Purchases of equipment and capitalized software | (13,167 | ) | (6,150 | ) | ||||
| Net cash provided by (used in) investing activities | (15,770 | ) | 1,749 | |||||
|
Financing Activities: |
||||||||
| Repurchase of senior convertible notes | (5,354 | ) | - | |||||
| Exercise of stock options | 1,273 | 1,509 | ||||||
| Sales of common stock under employee stock purchase plan | 1,183 | 1,300 | ||||||
| Repurchase of common stock | (31,238 | ) | (20,242 | ) | ||||
| Repurchase of restricted stock to satisfy tax withholding obligation | (4,261 | ) | (3,530 | ) | ||||
| Excess tax benefits from stock-based compensation | - | 103 | ||||||
| Net cash provided by (used in) financing activities | (38,397 | ) | (20,860 | ) | ||||
| Effect of exchange rate changes on cash | (1,906 | ) | (4,693 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | (120,004 | ) | (75,651 | ) | ||||
| Cash and cash equivalents, beginning of period | 542,851 | 497,193 | ||||||
| Cash and cash equivalents, end of period | $ | 422,847 | $ | 421,542 | ||||
| Cash paid for interest on convertible senior notes | $ | 3,068 | $ | 3,505 | ||||
| Cash paid for income taxes | $ | 1,357 | $ | 1,867 | ||||
| Digital River, Inc. | ||||||||||||||||||||
| GAAP to non-GAAP Reconciliations | ||||||||||||||||||||
| (Unaudited, in thousands, except per share amounts) | ||||||||||||||||||||
|
UTILIZING 21% EFFECTIVE INCOME TAX RATE |
||||||||||||||||||||
| Three months ended |
Twelve months |
|||||||||||||||||||
| March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||
| 2012 | 2012 | 2012 | 2012 | 2012 | ||||||||||||||||
| GAAP pre-tax income (loss) | $ | 5,777 | $ | 762 | $ | (1,431 | ) | $ | (172,170 | ) | $ | (167,062 | ) | |||||||
| Add back amortization of acquisition-related intangibles | 1,849 | 1,743 | 1,709 | 1,766 | 7,067 | |||||||||||||||
| Add back stock-based compensation expense | 5,961 | 6,231 | 6,063 | 11,262 | 29,517 | |||||||||||||||
| Add back restructuring related costs | 395 | 49 | 73 | 1,508 | 2,025 | |||||||||||||||
| Add back litigation settlement related costs | - | - | 750 | - | 750 | |||||||||||||||
| Add back acquisition and integration costs | - | - | 622 | 175 | 797 | |||||||||||||||
| Add back unrealized investment loss (gain) | - | - | 627 | (3,568 | ) | (2,941 | ) | |||||||||||||
| Add back goodwill impairment | - | - | - | 175,241 | 175,241 | |||||||||||||||
| Subtotal | 13,982 | 8,785 | 8,413 | 14,214 | 45,394 | |||||||||||||||
| Income tax expense @ 21% | 2,936 | 1,845 | 1,767 | 2,985 | 9,533 | |||||||||||||||
| Non-GAAP net income | 11,046 | 6,940 | 6,646 | 11,229 | 35,861 | |||||||||||||||
| Add back debt interest expense and issuance cost amortization, net of tax benefit | 1,409 | 1,412 | 1,414 | 1,382 | 5,617 | |||||||||||||||
| Adjusted net income for non-GAAP EPS calculation | $ | 12,455 | $ | 8,352 | $ | 8,060 | $ | 12,611 | $ | 41,478 | ||||||||||
| Non-GAAP net income per share - diluted | $ | 0.30 | $ | 0.20 | $ | 0.20 | $ | 0.31 | $ | 1.02 | ||||||||||
| Shares used in per share calculation - diluted | 41,032 | 40,783 | 40,172 | 40,163 | 40,719 | |||||||||||||||
| Three months ended |
Six months |
|||||||||||||||||||
| March 31, | June 30, | June 30, | ||||||||||||||||||
| 2013 | 2013 | 2013 | ||||||||||||||||||
| GAAP pre-tax income (loss) | $ | (10,444 | ) | $ | (1,730 | ) | $ | (12,174 | ) | |||||||||||
| Add back amortization of acquisition-related intangibles | 1,928 | 2,283 | 4,211 | |||||||||||||||||
| Add back stock-based compensation expense | 5,575 | 6,379 | 11,954 | |||||||||||||||||
| Add back restructuring related costs | 3,094 | 706 | 3,800 | |||||||||||||||||
| Add back litigation settlement related costs | - | 312 | 312 | |||||||||||||||||
| Add back acquisition and integration costs | 4,532 | 269 | 4,801 | |||||||||||||||||
| Add back realized investment loss (gain) | (11,067 | ) | (6,459 | ) | (17,526 | ) | ||||||||||||||
| Add back goodwill impairment | 21,249 | - | 21,249 | |||||||||||||||||
| Subtotal | 14,867 | 1,760 | 16,627 | |||||||||||||||||
| Income tax expense @ 21% | 3,122 | 370 | 3,492 | |||||||||||||||||
| Non-GAAP net income | 11,745 | 1,390 | 13,135 | |||||||||||||||||
| Add back debt interest expense and issuance cost amortization, net of tax benefit | 1,233 | - | 39 | |||||||||||||||||
| Adjusted net income for non-GAAP EPS calculation | $ | 12,978 | $ | 1,390 | $ | 13,174 | ||||||||||||||
| Non-GAAP net income per share - diluted | $ | 0.33 | $ | 0.04 | $ | 0.40 | ||||||||||||||
| Shares used in per share calculation - diluted | 39,767 | 32,739 | 33,347 | |||||||||||||||||
| Breakdown of stock-based compensation expense | ||||||||||||||||||||
| Three months ended |
Six months |
|||||||||||||||||||
| March 31, | June 30, | June 30, | ||||||||||||||||||
| 2013 | 2013 | 2013 | ||||||||||||||||||
| Direct cost of services | $ | 42 | $ | 47 | $ | 89 | ||||||||||||||
| Network and infrastructure | 415 | 327 | 742 | |||||||||||||||||
| Sales and marketing | 1,832 | 1,799 | 3,631 | |||||||||||||||||
| Product research and development | 925 | 846 | 1,771 | |||||||||||||||||
| General and administrative | 2,361 | 3,360 | 5,721 | |||||||||||||||||
| Total | $ | 5,575 | $ | 6,379 | $ | 11,954 | ||||||||||||||
| Digital River, Inc. | |||||||||||||||||||
| Non-GAAP Guidance | |||||||||||||||||||
| (Unaudited, in millions except per share amounts) | |||||||||||||||||||
| Revenue Guidance Table | |||||||||||||||||||
| 2012 Actual | |||||||||||||||||||
| Twelve months | |||||||||||||||||||
| Three months ended | ended | ||||||||||||||||||
| March 31, | June 30, | September 30, | December 31, | December 31, | |||||||||||||||
| 2012 | 2012 | 2012 | 2012 | 2012 | |||||||||||||||
| Commerce | $ | 82.1 | $ | 71.3 | $ | 71.7 | $ | 82.5 | $ | 307.6 | |||||||||
| Support Business | 20.3 | 19.5 | 20.0 | 18.8 | 78.6 | ||||||||||||||
| Total Revenue | $ | 102.4 | $ | 90.8 | $ | 91.7 | $ | 101.3 | $ | 386.2 | |||||||||
| 2013 Actual | |||||||||||||||||||
| Six months | |||||||||||||||||||
| Three months ended | ended | ||||||||||||||||||
| March 31, | June 30, | June 30, | |||||||||||||||||
| 2013 | 2013 | 2013 | |||||||||||||||||
| Commerce | $ | 97.4 | $ | 77.7 | $ | 175.1 | |||||||||||||
| Support Business | 16.3 | 14.8 | 31.1 | ||||||||||||||||
| Total Revenue | $ | 113.7 | $ | 92.5 | $ | 206.2 | |||||||||||||
| 2013 Guidance | |||||||||||||||||||
| Q3 2013 | FY 2013 | ||||||||||||||||||
| Low Guidance | High Guidance | Low Guidance | High Guidance | ||||||||||||||||
| Commerce | $ | 73.1 | $ | 75.3 | $ | 333.6 | $ | 338.9 | |||||||||||
| Support Business | 14.9 | 16.7 | 60.4 | 65.1 | |||||||||||||||
| Total Expected Revenue | $ | 88.0 | $ | 92.0 | $ | 394.0 | $ | 404.0 | |||||||||||
| Non-GAAP Guidance Reconciliation | |||||||||||||||||||
| Q3 2013 | FY 2013 | ||||||||||||||||||
| Low Guidance | High Guidance | Low Guidance | High Guidance | ||||||||||||||||
| Expected GAAP net income (loss) per share - diluted | $ | (0.38 | ) | $ | (0.31 | ) | $ | (0.67 | ) | $ | (0.54 | ) | |||||||
| Add back amortization of acquisition-related intangibles, net of tax | 0.05 | 0.05 | 0.21 | 0.21 | |||||||||||||||
| Add back stock-based compensation expense, net of tax | 0.12 | 0.12 | 0.53 | 0.53 | |||||||||||||||
| Add back restructuring related costs, net of tax | - | - | 0.09 | 0.09 | |||||||||||||||
| Add back litigation settlement related costs, net of tax | - | - | 0.01 | 0.01 | |||||||||||||||
| Add back acquisition and integration costs, net of tax | 0.02 | 0.02 | 0.16 | 0.16 | |||||||||||||||
| Add back realized investment gain, net of tax | - | - | (0.43 | ) | (0.43 | ) | |||||||||||||
| Add back goodwill impairment, net of tax | - | - | 0.52 | 0.52 | |||||||||||||||
| Add back convertible debt dilution impact, net of tax | - | - | (0.01 | ) | (0.01 | ) | |||||||||||||
| Tax variability | 0.09 | 0.07 | 0.14 | 0.11 | |||||||||||||||
| Expected non-GAAP diluted net income (loss) per share | $ | (0.10 | ) | $ | (0.05 | ) | $ | 0.55 | $ | 0.65 | |||||||||
CONTACT:
Digital River, Inc.
Investor Relations Contact:
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