Shutterfly, Inc. (NasdaqGS:SFLY) said intends to offer $220 million aggregate principal amount of convertible senior notes due 2018 in a private offering to qualified institutional buyers. It intends to use a portion of the net proceeds from the offering of the notes to fund acquisitions and other strategic transactions.

Acacia Research Corporation announced that its Express Card Systems LLC subsidiary has entered into a settlement agreement with Shutterfly, Inc. The agreement resolves litigation that was pending in the United States District Court for the Eastern District of Texas.

Shutterfly, Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the period, the company reported net revenues of $116,708,000 against $91,291,000 a year ago. Loss from operations was $23,964,000 against $19,080,000 a year ago. Loss before income taxes was $24,096,000 against $19,225,000 a year ago. Net loss was $12,405,000 or $0.33 per basic and diluted share against $10,040,000 or $0.29 per basic and diluted share a year ago. Net cash used in operating activities was $83,504,000 against $47,961,000 a year ago. Purchases of property and equipment were $15,033,000 against $5,037,000 a year ago. Capitalization of software and website development costs was $3,495,000 against $3,072,000 a year ago. Non-GAAP operating loss was $5,915,000 against $5,450,000 a year ago. Non-GAAP adjusted EBITDA was $3,312,000 against $561,000 a year ago. The company provided earnings guidance for the second quarter ending June 30, 2013 and full year ending December 31, 2013. For the quarter, the company expects net revenues to be $118.0 million to $121.2 million, operating loss to be $35.3 million to $36.8 million, diluted loss per share to be $0.55 to 0.58 and effective tax rate to be 39.5% to 40.5%. Adjusted operating loss to be $12.0 million to $13.5 million and adjusted LBITDA to be $1.5 million to $3.0 million. The company expects GAAP gross margin to range from 45.5% to 46% of net revenues. For the full year, the company expects net revenues to be $766 million to $771 million, operating income to be $12.7 million to $18.9 million, diluted loss per share to be $0.20 to 0.30 and effective tax rate to be 32% to 34%. Adjusted operating income to be $96.5 million to $104.6 million, adjusted EBITDA to be $137.7 million to $146.8 million and capital expenditures to range from 9.4% to 10.4% of net revenues.