Income Dips in Q4 For United Online; Classmates.com Name Changed

Net income dropped in the fourth quarter for Internet services and consumer products provider United Online Inc. when compared to the same period from a year ago. The Woodland Hills-based company also announced a name change of its Classmates.com subsidiary to Memory Lane Inc. as the website is rebranded as a portal for an extensive collection of nostalgic content from the 1940s through the 1990s. The debut of the Memory Lane website satisfies the goal the company had of increasing the consumer value proposition of that business, said United Online Chairman, President and Chief Executive Officer Mark Goldston. “We believe the evolution of Memory Lane in 2011 and beyond will enhance our competitive differentiation and create new revenue streams from e-commerce and pay-per-view transactions in addition to the revenue we derive from paid subscriptions and advertising,” Goldston said. In the fourth quarter, the Classmates.com division brought in $53.3 million revenue, a drop of 12 percent from the revenue of $60.7 million from the fourth quarter of 2009. United Online reported net income of $15.5 million, or $0.18 per diluted share, on revenues of $232.6 million for the quarter ending Dec. 31. That is a 6 percent drop from the net income of $16.5 million, or $0.19 per diluted share, on revenues of $249.5 million. For the full fiscal year, United Online reported net income of $50.5 million, or $0.58 per diluted share, on revenues of $920.6 million. For the previous fiscal year, the company brought in net income of $65.4 million, or $0.78 per diluted share, on revenues of $990.1 million.