Digital River (DRIV) Whacked After Large Customer Symantec (SYMC) Said It Will Leave

Shares of Digital River Inc. (Nasdaq: DRIV) are under heavy pressure today after Symantec (Nasdaq: SYMC) has notified the company that they will not extend an existing e-commerce agreement.

Symantec plans to move all of the online traffic currently outsourced to Digital River to an internally developed Symantec e-commerce system before the current contract expires. Symantec has not yet informed Digital River regarding the timing of its migration plans or the nature of the support it will require from Digital River during the transition period.

In 2008, sales of products for Symantec accounted for 24.3% of Digital River revenue and sales derived from proprietary Digital River services sold to Symantec consumers accounted for 9.4% of Digital River revenue. For Digital River's quarter ended June 30, 2009, sales of Symantec products accounted for 22.5% of revenue and related services revenues accounted for 7.5% of revenue.

Currently Digital River is down 35%.

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