October 28, 2008 / 9:59 PM / 10 years ago

UPDATE 1-Digital River posts Q3 rev below Street; cuts '08 view

* Q3 non-GAAP EPS $0.46 in line with estimates

* Q3 revenue $96.3 mln vs est $98.4 mln

* Sees Q4 non-GAAP EPS $0.43 to $0.48 vs est $0.59

* Sees Q4 rev of about $94 mln to $97 mln vs est $108.8 mln

* Lowers FY outlook

Oct 28 (Reuters) - Digital River Inc (DRIV.O), which manages online businesses, posted third-quarter revenue below market estimates, weighed down by the strong dollar and a decline in consumer spending, and it lowered its full-year forecast. [ID:nWNAB3315]

The company also forecast a weak fourth quarter.

“Our third quarter results were tempered by a combination of factors, including the sharp strengthening of the dollar and a sudden decline in consumer spending beginning in mid-September,” Chief Executive Joel Ronning said in a statement. [ID:nBw286401a]

For 2008, the company now expects earnings of $1.82 to $1.86 a share, excluding items, on revenue of about $392 million to $395 million.

On July 30, it had forecast earnings of $2, excluding items, on revenue of $410 million for the year. Digital River’s customers include Symantec Corp (SYMC.O), CA Inc CA.O, Microsoft Corp (MSFT.O) and Electronic Arts Inc ERTS.O.

Shares of the company, which competes with Germany’s Asknet A5AGn.DE and GSI Commerce Inc GSIC.O, were trading at $26 after the bell. They closed up 7 percent at $25.16 Tuesday on Nasdaq. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Deepak Kannan)

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