Digital River Plunges on Symantec Diss

MINNEAPOLIS (TheStreet) -- Shares of e-commerce player Digital River(DRIV Quote) sank 38% in the morning after the company said its biggest customer wouldn't be extending an e-commerce agreement.

According to a press release issued on Monday morning, Digital River said Symantec(SYMC Quote) decided not to re-up its current e-commerce deal with the Minnesota-based concern, which is set to expire in June 2010. Instead, Symantec plans to handle online traffic with an internally-created e-commerce system.

Products sold to Symantec amounted to just over 24% of Digital River's revenue in 2008 and nearly 23% in the second quarter of 2009.

Though Digital River CEO Joel Ronning sounded an upbeat tune in discussing the company's financial strength regardless of Symantec, he did note that the company was "surprised and deeply disappointed" in Symantec's move.

Digital River shares were tumbling $15.62 to $24.86 in morning trading.

Looking ahead, Digital River also said it expects third-quarter results at or just above the higher end of earlier announced range forecasts, along with around 8% sequential growth in non-Symantec revenue.

-- Written by Sung Moss in New York

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