Yesterday, Digital River, Inc. (DRIV), reported revenues of $96.6 million, down 1.8% year over year and 6.1% sequentially and in line with consensus estimate of $96.5 million. Revenues came in towards the high end of the management’s guidance of $95 million – $97 million. Quarterly sales would have been higher but for unfavorable exchange rates that hurt year-over-year revenue by about $4.6 million.

DRIV provides e-commerce solutions to software publishers and retailers around the world.

Sales and marketing expenses declined 1.1% year over year. However, sales and marketing costs are projected to increase in the second half of 2009 due to increases in headcount. Product R&D expense declined 1.8% year over year. R&D expense is also estimated to increase in the second half of the year as DRIV hires additional development resources to deliver new products and services. G&A costs were down almost 18% year over year.

GAAP operating margin came in