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Online Resources Posts Third Quarter 2008 Results
Financial and Operating Fundamentals In Line with Company Expectations
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CHANTILLY, Va., Oct 29, 2008 (BUSINESS WIRE) -- Online Resources Corporation (Nasdaq:ORCC), a leading provider of web-based financial services, today reported financial and operating results for the three months ended September 30, 2008. -- Revenue was $38.1 million, up 11 percent from $34.2 million in third quarter 2007. -- Ebitda, a non-GAAP measure adjusted for stock compensation expense and preferred stock accretion, was $8.3 million compared to $8.2 million in the prior year. -- Net loss available to common stockholders was $1.5 million, or $0.05 loss per diluted share. This result compares to net income of $1.1 million, or $0.04 per diluted share, in 2007. -- Core net income, a non-GAAP measure, was $1.9 million versus $2.3 million in 2007. Core net income per share was $0.06, compared to $0.08 in the prior year. "We were in line with our financial guidance for the quarter, thanks to strong ecommerce client sales and transaction growth across the company," said Matthew P. Lawlor, chairman and chief executive officer. "After factoring large client departures out of prior periods, earnings rose substantially and margins increased." Lawlor added, "Our ecommerce business had a particularly good quarter, with transactions increasing 41 percent over last year. We also signed two major credit card issuers to our web-based collection service, and our sales pipeline remains healthy. The three acquisitions we've made in this space are now contributing significantly to our growth." "Banking billpay transactions expanded over the prior year, increasing 18 percent on a normalized basis. Consumer adoption also continued its upward trend. Further, we were pleased that our largest client signed a multi-year renewal, and sales showed good progress." "Planning in this challenging environment requires us to be both flexible and conservative," Lawlor added. "We continue to see significant demand for our cost-effective online services, and we benefit from a recurring revenue stream and well diversified client base. We also took steps to further control expenses and right-size our workforce. Taken together, we believe these factors and initiatives position us well in the year ahead." 2008 Business Outlook The Company provided guidance for fourth quarter and updated its guidance for full year 2008 by narrowing its earnings and revenue expectations to the lower end of the previous guidance. These statements are forward-looking, and actual results may differ materially. Guidance is stated in millions, except for per share data. Today's Conference Call and Web Cast Management will host a conference call to discuss the results today at 5:00 pm ET. The conference call dial-in number is (800) 938-1087 for domestic participants and (706) 679-7266 for international participants. Alternatively, a live web cast of the call will be available through the "Investors" section of Online Resources' web site at www.orcc.com. The call and web cast will be recorded and available for playback from 8:00 pm ET on October 29th until midnight on Wednesday, November 5th. For the conference call playback, dial (800) 642-1687 for domestic participants and (706) 645-9291 for international participants and enter code 66705803. For web cast replay, go to the "Investors" section of www.orcc.com. About Online Resources Online Resources (Nasdaq: ORCC) powers financial interactions between millions of consumers and the company's financial institution and biller clients.Backed by its proprietary payments gateway that links banks directly with billers, the company provides web and phone-based financial services, electronic payments and marketing services to drive consumer adoption. Founded in 1989, Online Resources is the largest financial technology provider dedicated to the online channel. For more information, visit www.orcc.com. This news release contains statements about future events and expectations, which are "forward-looking statements." Any statement in this release that is not a statement of historical fact may be deemed to be a forward-looking statement. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Specifically factors that might cause such a difference include, but are not limited to: the company's history of losses and anticipation of future losses; the company's dependence on the marketing efforts of third parties; the potential fluctuations in the company's operating results; the company's potential need for additional capital; the company's potential inability to expand the company's services and related products in the event of substantial increases in demand for these services and related products; the company's competition; the company's ability to attract and retain skilled personnel; the company's reliance on the company's patents and other intellectual property; the early stage of market adoption of the services it offers; consolidation of the banking and financial services industry; and those risks and uncertainties discussed in filings made by the company with the Securities and Exchange Commission, including those risks and uncertainties contained under the heading "Risk Factors" in the company's Form 10-K, latest 10-Q, and S-3 as filed with the Securities and Exchange Commission. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. SOURCE: Online Resources Corporation Online Resources Corporation Copyright Business Wire 2008 News Provided by COMTEX |