Minneapolis-based ESD firm Digital River Inc. posted a first-quarter 1999 net loss of $5.34 million or 27 cents per share, compared with a net loss of $1.55 million or 16 cents per share, in the same period a year earlier.

Sales were $11.7 million in the quarter ended March 31, compared with sales of $2.27 million in the first quarter of 1998.

"We continue to be excited by the performance of our core business of providing electronic commerce outsourcing solutions for the sale of software and other digital products over the Internet," said Joel Ronning, chief executive officer. "This business is strong and the market for electronic software delivery continues to grow. Industry research from Jupiter Communications projects that online software sales will double in 1999 over 1998."

Ronning said that two acquisitions completed shortly after the close of the quarter have given Digital River two of the major e-commerce service providers to the shareware market. At the same time, Ronning said, the company is moving ahead with its fee-based e-commerce service initiative aimed at leveraging the company's infrastructure by providing e-commerce solutions to non-software companies.