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To: SirAlexx who wrote (38)	2/17/1998 8:29:00 PM
From: Brian K Crawford	Read Replies (1) of 2752

<<..can you give us a synopsis of your report; Digital River appears to have increasing losses, how and when are they expected to profitable?>> Hi Alexx..post 36 contains most of what I know about this situation. Yes, Digital River quarterly data shows operating losses. Yes, those losses are increasing in dollars. The % increases in sales are substantially greater than the % increases in expenses. They only did their first web software sale in the quarter ended 9/30/96, and are certainly in an infrastructure and client list buildup phase. The two big names they recently announced, USA Today and Cendant, are not yet showing up in revenues. Those revenues should begin to appear in the quarter ended 3/31/98. I have no guidance on the release of the 10-K as of December 31, 1997. *But I look forward to it being a barnburner for revenue increase. We will see... Please come back and post if you develop any additional info. I will. Good luck, Brian

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