United Online Warns of Shortfall
United Online Inc., the owner of the Juno and NetZero Internet-access services, predicted that its third-quarter revenue would be lower than analysts had estimated. Its shares fell 23% in after-hours trading.
Revenue for the third quarter is forecast to be $109 million to $112 million, company spokesman Peter Delgrosso said Wednesday. The average forecast from analysts surveyed by Thomson First Call was $119.2 million.
The Westlake Village-based company said second-quarter net income fell 16% to $12.3 million, or 19 cents a share, from $14.6 million, or 21 cents, a year earlier. Revenue climbed 39% to $110.6 million from $79.6 million.
Excluding a tax benefit, the company said profit would have been $10.3 million, or 15 cents a share. United Online said it added 94,000 customers for a total 3.2 million subscribers in the second quarter.
The company said it expected the number of paying subscribers would climb to 3.3 million to 3.5 million by the end of the year, down from its previous guidance of 3.35 million to 3.55 million.
United Online shares dropped as much as $3.14, or 23%, to $10.71 in after-hours trading. The stock fell $1.21 to $13.85 in regular trading on Nasdaq.
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