United Online 1Q results beat analysts estimates

United Online shares rose $1.18, or 11.3 percent, to $11.63. In the past year, the stock has traded between $9.55 and $17.97.

Late Tuesday, United Online said it earned $13 million, or 19 cents per share, roughly even with the year-ago quarter.

On an adjusted basis, the company earned 31 cents per share.

United's revenue declined to $121.8 million from $130 million.

Analysts polled by Thomson Financial expected an adjusted profit of 24 cents per share on $118.8 million in revenue.

United Online said revenue in its Classmates Media business -which includes the Classmates.com and MyPoints Web sites -rose to $51.9 million from $42.4 million, helped by the addition of 322,000 pay accounts during the quarter.

United Online's communications revenue, meanwhile, declined to $69.9 million from $129.9 million. The unit includes Internet access and e-mail services through NetZero and Juno. Pay accounts in this unit declined by a net 107,000 in the quarter.

For the second quarter, the company expects revenue of $117 million to $121 million; analysts anticipate $119.3 million.

United Online raised its operating income expectations, saying it now expects $81.2 million to $86.2 million for the year, compared with an earlier estimate for $74.7 million to $80.7 million. The company still expects revenue to decline in 2008.