UNited States : Digital River Shares Tumble As Symantec Will Not Extend Contract.Byline: Mamta03 Security management software provider Symantec Corp. (SYMC SYMC Symantec Corporation (stock symbol) : News ) said Monday it plans to move all the online sales of its Norton-branded consumer products worldwide, except Japan, to an internally-developed eCommerce solution. The sales are currently being outsourced to eCommerce provider Digital River Inc. (DRIV DRIV Drive (street type) : News ). Symantec also said it will not extend its existing e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. agreement with Digital River, that expires June 30. Shares of Digital River are down 39% in the regular trading session on news that it will lose the contract that accounts for more than a quarter of its revenues. Symantec will transition customers to the new online store in a phased approach to ensure a seamless experience. The new online store has commenced taking limited traffic in select markets. The company said that worldwide coverage will ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale over the next eight months and reach full capacity by June 30, 2010, when its contract with Digital River expires. Janice Chaffin, group president of Symantec Consumer Business Unit, said, "Establishing eCommerce as a core competency A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. emerging customer needs and market trends and enhance the end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. experience our customers have with us." Separately, Digital River said it was not informed by Symantec regarding the timing of its migration plans or the nature of the support that will be required from Digital River during the transition period. Joel Ronning, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Digital River, said, "We are surprised and deeply disappointed that Symantec has chosen to move to an internally developed system, but we remain very confident in the future of our business. While Symantec is still our largest customer, the proportion of Symantec revenues relative to our other customers has declined significantly over the past few years as our non-Symantec business has grown at an increasing rate." In 2008, sales of products for Symantec accounted for 24.3% of Digital River's revenue, while sales derived from services sold to Symantec consumers accounted for 9.4% of its revenue. However, for the quarter ended June 30, 2009, sales of Symantec products accounted for only 22.5% of Digital River's revenue, while related services revenues accounted for 7.5% of revenue. Digital River said it now expects financial results for the third quarter ending September 30, 2009, to be "at or slightly above" the top end of the guidance it provided on July 29. At that time, the company forecast GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income per share of $0.26-$0.29 and non-GAAP net income per share of $0.38-$0.41, both assuming a 27% tax rate. On average, sixteen analysts polled by Thomson Reuters expect the company to report earnings of $0.40 per share for the quarter. Analysts' estimates typically exclude special items. Copyright : Euclid Infotech Pvt. Ltd. Provided by Syndigate.info an Albawaba.com company |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion