Digital River will miss first-quarter earnings and revenue targets, the company said Friday. The Eden Prairie, Minn.-based company, which sells e-commerce applications and Web hosting services, expects revenue for the first quarter, ending March 31, to total $18 million, lower than the $19.4 million it predicted but a 38 percent increase from the same quarter last year. It expects to report earnings per share of 1 cent to 2 cents for the quarter, before acquisition-related charges and other costs, missing earlier estimates of 7 cents per share.
Blaming the economy for longer sales cycles and postponed projects, Digital River also lowered revenue forecasts for 2002 from $80 million to $85 million to $70 million to $73 million. It expects 2002 earnings per share prior to acquisition costs to be 12 cents to 14 cents, vs. 37 cents to 40 cents it had forecast.