United Online Earnings DisappointWednesday, February 20, 2013
Shares of United Online Inc. fell slightly after the company reported fourth-quarter year results that missed analyst expectations.
The Woodland Hills company, which provides internet access and runs ecommerce sites, reported net income of $13.2 million (14 cents a share) in the quarter ended Dec. 31, compared to $22.7 million (25 cents) for the same quarter a year earlier. Revenue was flat at $219 million.
Analysts on average expected income of 16 cents a share, according to Thomson Financial Network.
The lackluster results were driven by $27 million impairment charge due to poor performance at the MyPoints.com unit, a daily rewards site for shoppers.
Chief Executive Mark Goldston said the company is continuing to work toward a spin-off of its FTD floral site as an independent, publicly-traded company. The transaction is expected to be closed in the third quarter.
“We also are continuing to explore strategic alternatives for our other businesses and monetization opportunities for our patent portfolio,” Goldston said in the statement.
For the full year, the company reported net income of $12.5 million (13 cents) compared to $51.7 million (56 cents) for the previous year. Revenue increased 6 percent to $503 million.
Shares of United Online lost 13 cents, or 2 percent, to close at $6.23 on the Nasdaq.