United Online Swings to Loss in Quarter

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United Online Inc. reported a loss in its fourth quarter, with the online services provider saying its recently acquired FTD floral business was hit by what the company called a “weakening consumer spending environment.”

After the markets closed Thursday, the Woodland Hills Internet access and online service provider reported a net loss of nearly $138 million (-$1.68 per share), compared with net income of $14.6 million (21 cents) a year ago. The company took $176 million in charges to write down goodwill and certain intangible assets of FTD.

Without the charge, the company would have reported net income of 33 cents per shares, 1 cent less than the average forecast of analysts surveyed by Thomson First Call.

Revenue jumped 104 percent to $256 million, largely from the addition of FTD’s online and phone ordering business. United Online, which has been diversifying away from its shrinking dial-up online access business, otherwise would have seen 2 percent decline in revenue. Analysts expected revenue of $263 million.

Revenue from its communications (online access) segment fell 17 percent, offset by a 17 percent increase in its Classmates Media social networking business.

“We expect that adverse macroeconomic factors in both the U.S. and U.K. will continue to negatively impact the FTD segment,” said Chief Executive Mark Goldston in a statement. “However, we continue to be excited about our new marketing initiatives within the FTD segment and our ability to enhance our competitive position.”

Prior to the announcement, the company’s shares closed down 17 cents, or 3.5 percent, to $4.69 on the Nasdaq.

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