The company, which sells personalized photo books and other products, announced that its CEO, Christopher North, is leaving the firm and its board in August. Shares were halted prior to trading, but resumed at 4:30 PM ET and were down as much as 9.6% after hours.
In a separate announcement, Shutterfly also said that it's formed a "strategic review committee," with Morgan Stanley acting as advisor, to explore strategic alternatives for the company and to evaluate the its capital structure and capital return policy.
"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's fourth-quarter earnings revealed quarterly GAAP net revenue of $950 million, and net revenue of $528 million in its consumer segment, representing a yearly increase of just 1%. Net income was $178 million or $5.19 per share.
"Our results in the fourth quarter were mixed, with strong performance in Shutterfly Business Solutions and solid performance in Lifetouch offset by disappointing performance in Shutterfly Consumer, which had lower than expected growth of 1%," said North in a statement.
Shutterfly's board did not indicate a timetable for the strategic review, and said they wouldn't comment until the board approves a particular action. In the statement, the board noted that Shutterfly "was approached by a third party about the potential acquisition of the Company," and engaged with other parties about a potential acquisition, but that the conversations have not yielded any proposals.
North will return to England at the end of August with his family, Shutterfly said in a statement, and the search for his replacement will start immediately.