Atlanta, GA 5/4/12 (StreetBeat) -- Online commerce technology company Digital River Inc. (Nasdaq: DRIV) said Thursday that its first-quarter net income fell from the year before as costs rose faster than revenue.The company also issued guidance for the second quarter that fell below Wall Street expectations, and shares slid 6.3 percent in aftermarket trading.
The company said that during the quarter ended March 31, it had net income of $4.7 million, or 14 cents per share, down from $7 million, or 18 cents per share, in the same period last year.
Excluding one-time items such as the cost of paying employees with stock, earnings were 30 cents per share. Analysts expected earnings of 29 cents per share, according to FactSet.
Revenue during the quarter rose 4 percent to $102.4 million from $98.2 million. Analysts had been expecting revenue of $100.2 million.
Costs rose faster than sales, rising 8 percent to $95.3 million.
CEO Joel Ronning said the company was "slightly cautious" about the economic outlook in Europe, where it has offices. The company, which is based in Minneapolis, also has operations in Asia and South America.
Looking forward, Digital River said that during the current quarter ending in June, it expects to earn adjusted net income between 17 cents and 19 cents per share. Analysts were expecting earnings of 23 cents per share.
The company said revenue should be between $92 million and $94 million during the quarter. Analysts were expecting $95.3 million.
Shares fell $1.17 to $17.40 in extended trading. The stock had gained 7 cents to close at $18.57 Thursday in regular trading. Shares have traded between $13.53 and $34.16 over the last year.
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