April 29, 2010 / 9:08 PM / in 8 years

UPDATE 1-Digital River profit outlook pulls shares down

* Q1 adj EPS $0.30, beats estimates

* Sees Q2 adj profit below estimates

* Shares fall 4 percent in extended trading

April 29 (Reuters) - E-commerce services provider Digital River Inc DRIV.O reported better-than-expected quarterly earnings as it signed up new customers, but its weak second-quarter profit outlook sent its shares down 4 percent.

For the second quarter, the company forecast earnings of 5 cents a share, excluding items.

Digital River expects core revenue to rise 15 percent. It sees Symantec-related revenue of about $4.5 million.

Analysts were looking for earnings of 12 cents a share, excluding exceptional items, on revenue of $87 million, according to Thomson Reuters I/B/E/S.

    First-quarter net income fell to $7 million, or 18 cents a share, from $13.3 million, or 36 cents a share, a year earlier. Excluding items, earnings were 30 cents a share.

    Revenue fell 4 percent to $98.7 million.

    Analysts expected earnings of 21 cents a share, excluding exceptional items, on revenue of $97.5 million.

    Shares of Digital River -- whose customers include Symantec (SYMC.O), Adobe Systems Inc (ADBE.O), Eastman Kodak Co EK.N, Electronic Arts Inc ERTS.O and Microsoft Corp (MSFT.O) -- fell $1.38 to $29.90 in after-hours trading. They closed at $31.28 Thursday on Nasdaq. (Reporting by S. John Tilak in Bangalore; Editing by Ratul Ray Chaudhuri)

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