NEW YORK (CNNfn) - Martha Stewart Living Omnimedia said Tuesday it plans to shut its money-losing Internet-direct commerce business by the end of the year. It features The Catalog for Living -- a broad collection of household and decorating products.

But the company said it will continue its profitable floral business, MarthasFlowers.

"We concluded that focusing attention and resources on other areas of the business with greater growth potential would ultimately allow the company to achieve improved financial performance," the company said in its earnings statement.

The company reported an operating loss of $19.3 million for the second quarter, compared with operating income of $1.5 million during the second quarter of last year. The results largely reflect a loss of advertising revenue for the company's core business, Martha Stewart Living magazine.

Martha Stewart Living Omnimedia (MSO: down $0.27 to $11.13, Research, Estimates) also announced a new television program, "Everyday Food," scheduled to air on PBS stations nationwide beginning next January. The half-hour program is to be hosted by five cooks and produced by Martha Stewart Living Television Productions.

"Given the recent developments in Martha Stewart's legal situation, we are moving ahead with a substantial amount of the uncertainty behind us," said Chief Executive Officer Sharon Patrick. "We continue to manage the company for the long term."

Martha Stewart last month was sentenced to five months in jail and five months of home detention after a jury convicted her of obstruction of justice for lying about her sale of ImClone (IMCL: Research, Estimates) stock. Stewart is appealing her conviction.  

-- from CNNfn Senior Correspondent Allan Chernoff