1-800-Flowers.com, which said a week ago that its fiscal
second quarter earnings will be in line with analysts' estimates of 2 to 3
cents per share, today announced a distribution of about five million shares
of stock held by Benchmark Capital.
The addition of the shares into the marketplace sent the stock down $2.08 in
mid-morning trading to $15.30.
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Benchmark, a California-based venture capital firm, made the distribution
(all of its 1-800-Florwers.com stock) to more than 100 limited partners in
the Benchmark Capital funds and Benchmark's general partners, increasing the
number of 1-800-Flowers.com shares in the marketplace to about 19 million.
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Benchmark Capital acquired the shares on May 20, 1999 in a private
transaction just prior to the August initial public offering of the
multi-channel flower and gift retailer.
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"As we stated in our press release last week, we continue to be pleased with
our operating performance and we remain focused on growing our business cost
effectively and thereby building long-term shareholder value," said Jim
McCann, CEO of Westbury, N.Y.-based 1-800-Flowers.com. "We believe the
Benchmark distribution will provide long-term benefits for our shareholders
by increasing liquidity in the marketplace."
The company said last week that it expects fiscal second quarter revenue to
come in at about $162 million, which would represent a jump of roughly 21
percent from its year-ago total of $134 million. Online sales are forecast at
$60.5 million for the period.
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