Digital River 2007 Annual Report Download - page 5

During the last decade, our global end-to-end
e-commerce platform has been time tested by
thousands of companies selling digital and physical
goods online. Today, we believe our business
model is unmatched in the industry. We continue
to win clients due to the breadth and quality of
services we provide – from site development and
hosting to payment processing, fraud prevention,
tax management and global e-marketing. In short,
when it comes to global e-commerce, we take care
of the complexity and risk so our clients can take
care of their core businesses – a proposition that
our clients continue to value.
Our plan moving forward is to aggressively build
upon this success. In conjunction with our fourth
quarter 2007 earnings release, we announced
a number of strategic investments that we will
be making in 2008 to further drive growth and
efficiency in our business. As we continue to grow
globally, we believe that a key differentiator for us
will be online payment services. In addition to our
2007 acquisition of Sweden-based payment service
provider, Netgiro Systems AB, we plan to devote
additional resources to strengthening our offerings
in this space with services such as micro-payments
and subscriptions management. We also intend to
continue to expand our investments in consumer
electronics and gaming – vertical markets where we
have already demonstrated that we can leverage
our existing business model and core competencies
to drive meaningful growth.
income from operations
in millions of dollars
2003 2004 2005 2006 2007
1.60
1.40
1.20
1.00
.80
.60
.40
.20
.0
2003 2004 2005 2006 2007
74
68
66
34
80
70
60
50
40
30
20
10
0
earnings
per diluted share
15
1.58
1.40
1.41
.94
.48
$74฀million
Income from operations reached approximately
$74 million in 2007, nearly a fivefold increase
from 2003.
$1.58฀per฀share
Net income per diluted share reached
$1.58 per share during 2007, the highest
level in the Company’s history.
$$