Thursday January 27, 6:02 am Eastern Time
Company Press Release
Digital River Expands Business and Forms Two Divisions -
Software Services and E-business Services
Software Division Targets Profitability Before Depreciation and Amortization By December 2000
MINNEAPOLIS--(BUSINESS WIRE)--Jan. 27, 2000-- Digital River, Inc., (Nasdaq:DRIV - news), a leading global e-commerce
outsourcing firm, today announced that it will segment its business into two separate divisions, Software and Digital Commerce
Services and E-Business Services.
``This organizational change will allow us to better focus our internal strategy. Digital River has built the market leader for
e-commerce outsourcing in the software vertical market,' said Joel Ronning, CEO of Digital River. ``This year, we expect to see
continued strong growth in our Software and Digital Commerce Services business, and we will target profitability before depreciation
and amortization by December 2000 for this division.'
``With the formation of E-Business Services, we are expanding our business platform to build a market leader in e-commerce
outsourcing for manufacturers, distributors and retailers,' said Ronning. ``We will invest very aggressively in expanding our business
to these new markets in 2000.'
The Company's former vice president of sales, Jay Kerutis, has been promoted to executive vice president to lead the Software and
Digital Commerce Services Division, which includes the company's business of e-commerce outsourcing for software publishers
and online retailers. For its customers, Digital River offers site design and hosting, order transaction management, fulfillment of
physical and digital products, fraud-screening, customer service, analytical marketing, site merchandising services and online
reporting.
``We believe we will continue to experience significant revenue growth in the Software and Digital Commerce Services Division as a
result of our partnerships in software and retail by continuing to provide valuable content, analytical marketing, merchandising, and
other e-commerce service offerings that help our clients grow their online businesses,' said Kerutis.
``Our depth of technology, talent and system infrastructure has prepared us to support different kinds of customers. Now, we're
adding new levels of sell-side business-to-business functionality to our existing system that will address our clients' evolving
e-commerce challenges,' said Ronning.
Digital River will announce its fourth quarter results at 3:45 (CST) today. |
