Longtime United Online Inc. Chief Executive Mark Goldston announced on Tuesday he will be leaving the Woodland Hills internet access provider after it spins off its FTD floral delivery business.
Goldston, who has been with United Online and its predecessor company for 14 years, announced the departure in the company’s first quarter earnings statement. The company on Tuesday also filed its initial registration statement for its FTD Cos. Inc. spinoff with the Securities and Exchange Commission.
“After more than 14 years as chairman and CEO of United Online and its predecessor, NetZero, a raw startup that I joined back in March 1999, we have built an outstanding company,” said Goldston, in the statement.
“Given the very talented and experienced senior management teams we have at United Online and FTD Cos. and my extreme confidence in the presidents of the various business units, I feel that when the tax-free spin off of FTD Cos. is completed, it would be the appropriate time for me to move on and pursue career opportunities outside of United Online,” the statement continued.
After the spinoff, Rob Apatoff, the current FTD president, will become chief executive of FTD, and the United Online board will conduct a search for a new chief executive of United Online.
United Online expects the spinoff to be completed in the third quarter. After the separation, current stockholders will possess shares in both companies.
United Online reported net income of $7.9 million (9 cents a share) in the quarter ended March 31, compared to $11.2 million (12 cents) for the same quarter a year earlier. Revenue increased 2 percent to $247 million.
Analysts on average had expected earnings of 16 cents on revenue of $243 million, according to Thomson Financial Network.
Shares gained 21 cents, or 3.2 percent, to close at $6.80 on the Nasdaq.