Digital River Inc. said Monday that Symantec Corp., a network security provider that accounts for more than a quarter of Digital River's revenue, has decided not to renew its outsourcing contract when it ends next year.
The company's stock dove $11.62, or 29 percent, to $28.80 ahead of the regular trading session.
Digital River, which provides technology and services for companies that sell products online, said Symantec will be taking those functions on itself after their outsourcing contract expires June 30, 2010.
While noting the proportion of Digital River's revenue Symantec accounts for has declined from last year, the company said Symantec still made up about 30 percent of its revenue in the quarter ended in June.
The company also said it expects third-quarter results to come in near the top end of its previous forecast. Digital River said in July it expected adjusted earnings of 38 cents to 41 cents per share on sales of $96.5 million to $98.5 million.