EX-12.1 2 c07653exv12w1.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12w1
 

EXHIBIT 12.1
Digital River, Inc.
Computation of Ratio of Earnings to Fixed Charges
(in thousands, except ratios)
                                                 
                                            Six months
                                            ended
    Years ended December 31,   June 30,
    2001   2002   2003   2004   2005   2006
Net Income (Loss) from operations as reported
   $ (20,103 )   $ (916 )   $ 16,298     $ 34,762     $ 66,713     $ 29,666  
Add: Fixed charges
     137       165       235       2,094       3,092       804  
Earnings as defined
     (19,966 )     (751 )     16,533       36,856       69,805       30,470  
Fixed charges
   $ 137     $ 165     $ 235     $ 2,094     $ 3,092     $ 804  
Ratio of earnings to fixed charges (1)
     —       —       70.4       17.6       22.6       37.9  
 
(1)   The ratio of earnings to fixed charges is computed by dividing income (loss) from operations plus fixed charges by fixed charges. Fixed charges consist of interest expense, amortization of debt issuance costs and that portion of rental payments under operating leases that we believe to be representative of interest. Earnings were insufficient to cover fixed charges in 2001 and 2002 by an amount equal to the net loss for the period.