Redbox President Mitch Lowe to Depart
The DVD rental kiosk operator said it has launched an external search for a successor as parent company Coinstar pre-announced quarterly results that came in below expectations and its stock dropped sharply in after-hours.
NEW YORK - Coinstar's DVD rental kiosk operator Redbox said Thursday that president Mitch Lowe has resigned "to pursue entrepreneurial and other interests," but will serve in his role until a successor is named. Coinstar said it has started an external search for a replacement.
Coinstar also updated its financial guidance, raising the low end of its full-year 2011 revenue expectation and lifting its earnings per share projection. But it also pre-announced revenue for the latest quarter that came in below Wall Street expectations. Coinstar shares fell more than 10 percent in after-hours.
"On behalf of Coinstar and the Redbox organization, I want to thank Mitch for his many contributions over the last eight years, particularly in establishing Redbox as a leader in the home entertainment business," said Coinstar CEO Paul Davis about Lowe.
"When I joined Redbox in 2003, it was part of McDonald's, and we had only a few kiosks installed," recalled Lowe. "Today, Redbox has more than 31,800 kiosks located across the United States and has rented more than 1.5 billion DVDs."
Coinstar said it now expects revenue of $1.76 billion-$1.85 billion and earnings from continuing operations of $2.90-$3.15 per share. It didn't break out Redbox's performance, but it cited its rollout of video game rentals as one contributing factor.
Previously, it had predicted revenue of $1.73 billion-$1.85 billion and earnings per share of $2.75-$3.10.