UPDATE 3-Digital River to lose Symantec contract; shares dive
* Says 24 pct of '08 rev came from product sales to Symantec
* Sees Q3 results at or above top end of view
* Shares sink 41 pct (Adds analyst downgrade, market cap details; updates shares)
By S. John Tilak
BANGALORE, Oct 12 (Reuters) - Shares of Digital River Inc DRIV.O slumped 41 percent, after the e-commerce services provider said its top customer Symantec (SYMC.O: Quotazione) will not extend an existing contract to manage its online traffic.
On a conference call with analysts, the company also said it may not provide an outlook for 2010 when it reports its quarterly results on Nov. 3
The news triggered the stock's biggest single-day fall in seven years, trimming the company's market capitalization to about $973.9 million from about $1.56 billion.
Digital River's products and services have helped drive traffic to Symantec's North American e-commerce sites and launch managed paid search and e-mail programs.
Digital River said Symantec expects to move all the online traffic currently outsourced to Digital River to an internally developed e-commerce system before the current contract expires on June 30, 2010. Continua...