Shutterfly reports mixed earnings, announces review committee amid CEO departure
Shutterfly Inc. shares were halted late Tuesday after the company reported mixed quarterly expectations and said its chief executive was on his way out as its board has formed a committee to review its future. Shutterfly has been approached by a third party about a potential acquisition and subsequently engaged in talks with additional third parties, but no proposals have been received, the company said. "Our board continues to be committed to evaluating all options that maximize shareholder value. We have engaged with any serious indication of interest in the past, and given recent interest we believe it is prudent to form a strategic review committee to fully consider any expressions of interest going forward," Board Chairman Will Lansing said in a statement. Shutterfly CEO Christopher North will step down at the end of August in order to return to the U.K. with his family, the company said in a separate press release. The board has hired an executive search firm to identify candidates, it said. Shutterfly said it earned $177 million, or $5.19 a share, from $112 million a year ago. Revenue hit $950 million, from $594 million a year ago. Analysts polled by FactSet had expected earnings of $5.13 a share on sales of $952 million. Performance in Shutterfly's business solutions and solid performance in Lifetouch was offset by "disappointing performance in Shutterfly Consumer," the company said. Shares of Shutterfly had ended the regular trading day up 0.6%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.