Strictly in the rumor category – Microsoft Likely In Digital River’s Deal Pipeline:
Digital River reported on Thursday solid second-quarter results with upside despite the seasonally weak quarter. The e-commerce outsourcer also announced it has reached new business deals, one of which could be with Microsoft, according to a report from RBC Capital Markets.
On Thursday, Digital River (nasdaq: DRIV ) posted second-quarter earnings per share and revenue of 41 cents and $71.3 million, beating the Street’s estimates of 37 cents and $70 million.
On its earnings conference call, Digital River also announced new deals in the pipeline for first-quarter 2007.
“It was these new deals which garnered the focus of the call, and while management was not able to say much, they did mention that it was some of the biggest business they had ever seen,” wrote Robert Breza, an analyst at RBC, in a report Friday.
The analyst speculated that one of these new deals is with Microsoft (nasdaq: MSFT). Digital River said it hopes to announce the deals before its third-quarter earnings report, he said.
As indicated in the article, Digital River is a prominent e-commerce outsourcer:
Digital River is a global leader in e-commerce outsourcing, having built, managed and grown revenues for more than 40,000 clients since our inception in 1994. We deliver e-commerce sites based on best practices for companies like Symantec, Motorola, 3M, H&R Block, Novell, Autodesk, ACT! and Staples.com.
It’s fun to speculate on a hot Friday afternoon about which of Microsoft’s businesses will need significant e-commerce outsourcing in 1Q2007.