* Sees FY rev $393 mln vs prior $405.5 mln
* Sees FY EPS $1.12 vs prior $1.15
* Says seeing softness in education and shareware business
* Shares down 9 pct in extended trade (Rewrites paragraph 1, adds conference call details, updates share)
July 28 (Reuters) - E-commerce services provider Digital River Inc cut its full-year outlook, citing softness in its education and shareware segments, sending its shares down 9 percent in after-market trade.
“We are again seeing softness return to the shareware and education... Colleges and universities are still feeling the impact of tighter state and federal funding programs,” Thomas Donnelly, chief financial officer, said on a conference call with analysts.
The company provides web development and hosting software to customers that include universities and, sometimes, the students themselves. Digital River has not publicly specified education segment’s share in its revenue.
The company also said it was seeing softness in the shareware segment, but expects the smartphone devices boom to offset the weakness.
The shareware segment, which contributes more than 10 percent to overall revenue, sells products that help customers host software demos.
“We’re just being prudent and cautious as we look to the second half,” Donnelly said.
The company cut full-year earnings outlook to $1.12 a share, excluding items, on revenue of $393 million, from the $1.15 a share and $405.5 million revenue it had forecast earlier.
Analysts, on average, were expecting earnings of $1.14 a share on revenue of $406.2 million, according to Thomson Reuters I/B/E/S.
Second-quarter net income was $291,000, or 1 cent a share, from a loss of $2.48 million, or 7 cents a share, a year earlier.
Eden Prairie, Minnesota-based Digital River’s shares, which have lost 14 percent in the last three months, were down at $27.50 in after-hours trading. They had closed at $30.22 on Thursday on Nasdaq. (Reporting by Siddharth Cavale in Bangalore; Editing by Sriraj Kalluvila)