FTD Group 3Q profit slips on acquisition-related costs

DOWNERS GROVE, Ill.—FTD Group Inc., a florist network and Web site operator being acquired by United Online Inc., said Wednesday its fiscal third-quarter profit dipped 6 percent, hurt by acquisition-related costs and other items.

Separately, Internet service provider United Online said it will purchase FTD as it looks to expand into the growing floral Internet business.

Based on preliminary results, for the period ended March 31, earnings fell to $9 million, or 31 cents per share, compared with $9.6 million, or 32 cents per share, a year ago.

Quarterly results were hurt by about 7 cents per share related to abandoned acquisition opportunities, the United Online deal, and other items; and were offset by a 1 cent per share reduction to its tax provision, FTD said.

Revenue is expected at about $192 million, which would be a 5 percent increase from $182.9 million in the prior year.

Analysts polled by Thomson Financial predict third-quarter earnings of 38 cents per share on sales of $192.8 million. Estimates typically exclude one-time items.

In addition, FTD said it expects to maintain its fiscal full-year sales forecast of about $645 million when it reports its financial results on May 6.

Analysts expect fiscal 2008 sales of $645.5 million.

Shares of FTD Group added 81 cents, or 6 percent, to $14.31 in electronic premarket trading. The stock closed at $13.50 on Tuesday.