E-commerce solutions provider
Digital River Inc.
) has recently announced the launch of its newest set of
applications named The App Practice, a part of Digital River Global
marketing solution. This set is particularly designed to offer
improved e-business solutions to online traders across
The company's latest applications provide an excellent platform
to its users for allocating online marketing and sales of digital
and physical products through various operating systems.
Furthermore, The App Practice is likely to help online traders
maximize their revenues and enhance consumers' buying experience
across multiple digital channels and global geographies.
Digital River's customized solutions package is expected to help
retailers support their digital monetization and online growth
strategies. Moreover, in order to provide a convenient easy-to-use
e-store shopping experience, Digital River has created a tool that
automatically generates customized app store and cloud payment
services for the buyers.
Management stated that the newly introduced application is
expected to positively influence the online buyer-seller relation
and also cater to ameliorating global online retail market
standards. Currently the company is focusing on diversifying its
software business into complementary markets, which include
consumer electronics and games.
Earlier, Digital River reported revenues of $102.4 million in
the first quarter of 2012, up 4.3% from the year ago quarter.
Management is cautiously optimistic for the remainder of fiscal
2012 and is encouraged by the growth in the sales pipeline, new
product roadmap and recent wins in the business-to-business
Even though Digital River globally established itself in the
cloud-commerce business, the competitive market condition may
hinder its growth in future. The company faces tough competition
Ellie Mae, Inc
), who are rapidly strengthening their potentials through expanding
their businesses worldwide.
The current Zacks Consensus Estimates for Digital River
are 4 cents and 69 cents for the second quarter of 2012 and
for fiscal 2012, respectively. As the current macro-economic
conditions continue to be challenging, the company continues to
have a Zacks #4 Rank, which translates into a short-term 'Sell'
rating. Nevertheless, in the long run, we maintain a Neutral
recommendation on the stock.
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