United Online

(UNTD)

met first-quarter estimates and set plans to pay a quarterly dividend. Its shares rose 8%.

The Woodland Hills, Calif., Internet service provider earned $11.5 million, or 18 cents a share, compared to $12.4 million, or 18 cents a share, a year earlier. Excluding certain costs, latest-quarter earnings were 25 cents a share, in line with the Thomson First Call analyst consensus estimate.

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Revenue rose 21% from a year ago to $130.5 million, beating the $128 million Wall Street estimate.

The company also said it would pay a 20-cent quarterly dividend. "The Board's decision to return capital to shareholders via a dividend complements our existing share repurchase program and reflects confidence in United Online's strong cash flows," said finance chief Charles S. Hilliard. "Importantly, we continue to allocate capital to new research and development at a record pace."

United Online rose 74 cents late Tuesday to $9.60.