Back to top

Analyst Blog

Digital River, Inc. (DRIV - Snapshot Report) recently extended its agreement with Trend Micro till December 2014.

As a part of the renewal agreement, Digital River will manage the online commerce and e-marketing solutions for select Trend Micro regional e-stores through December 2014. 
Being a long standing client since 2001, Trend Micro will continue to work with Digital River’s marketForce interactive agency.
Trend Micro currently uses a broad range of marketForce’s e-marketing services, including program strategy, media buying, coding, creative management, test execution, reporting, optimization and analysis in order to support customer acquisition and improve returns across its offerings. 
The company has been on the lookout for to renewal of its agreements with its customers after having lost Symantec Corporation in 2010. 
Symantec decided to not renew its e-commerce agreement with Digital River beyond June 30, 2010 and migrated its online store traffic to an internally developed e-commerce system. 
During the third quarter, Digital River signed many new and expanded agreements. The company extended its relationship with Siemens, Novell, Corel, Individual Software and Grass Valley. The company also signed multi year extensions with two of its top clients, Trend Micro and Kaspersky. 
In 2010, Digital River amended amendment its agreement with Microsoft Corporation (MSFT - Analyst Report) and thereby extended the term of the Microsoft Operations Digital Distribution Agreement upto October 31, 2013. 
Meanwhile, for 2013, the company is likely to face some headwinds due to macroeconomic conditions, client attrition and additional necessary ramp up in investments to ensure an updated technology infrastructure.
Digital River forecasts that overall softness in the economy, especially in Europe coupled with recent decline in PC sales will make it challenging to post a growth in revenue. The company saw some client attrition in 2012 and expects the same in 2013 along with a decline in supporting business revenue. 
We continue to maintain our long-term Neutral recommendation on Digital River. Our recommendation is supported by a Zacks #3 Rank, which translates into a short-term rating of Hold. 

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
STRATTEC SE… STRT 80.24 +3.00%
PATTERSON-U… PTEN 34.54 +2.98%