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Digital River, Inc. (Nasdaq: DRIV) picked up 0.47 to 3.06 Wednesday after the e-commerce service provider announced an agreement with Internet security software maker Symantec Corp. (Nasdaq: SYMC) (Nasdaq: SYMC).
Digital River said it will manage worldwide sales and delivery of "both digital and physical products" purchased over Symantec's Web site.
"Our partnership with Symantec illustrates our continued ability to globally expand recognized brands," said Joel Ronning, chief executive officer of Minneapolis, Minnesota-based Digital River. "Symantec will become one of Digital River's largest clients, and this represents a profitable relationship for both companies."
Digital River said it will manage all e-commerce products available within Symantec's online store, including Norton Anti-Virus, Norton Internet Security and Norton System Works. Digital River will also facilitate the sale of multiple site licenses for Symantec's business customers, and provide customer service for Symantec's worldwide operations.
The sites covered by the agreement are in the United States, Canada, Latin America, Brazil, Germany, France, Italy, Netherlands, Sweden, the United Kingdom, the Middle East, South Africa, and the Asia-Pacific region. All the sites will launch simultaneously, and include localized language and currency.
Symantec will also use Digital River's e-marketing services, including targeted e-mail campaigns, direct marketing and shopping-cart banners, to help it increase online sales.
Digital River reported third-quarter revenue of US$7.6 million, up from $4 million in the same quarter a year earlier. The company reported a net loss for the quarter of $8.1 million, or 37 cents per share.
The company expects fourth-quarter revenue to be 25 to 30 percent above
third-quarter levels, and a loss before extraordinary items of 21 cents per
share.
