CHANTILLY, Va.--(BUSINESS WIRE)--
Online Resources Corporation (Nasdaq: ORCC), a leading provider of
online financial services, today announced that its Board of Directors
is evaluating unsolicited expressions of interest in potential business
combinations that it has received from third parties. The Board is
considering these alternatives against the long-term strategic growth
plan that it recently approved in order to determine whether there is
now an option that can deliver greater shareholder value. Under the
strategic plan, the Company has enhanced its management team and is
currently investing in technology, products and organizational structure
to drive revenue growth and margin improvement.
"Since I arrived as CEO in June, we have worked diligently to develop a
long-term plan to put Online Resources back on the path to sustainable
growth by investing in new ways to provide exceptional value to our
customers," said Joseph Cowan, President and Chief Executive Officer of
Online Resources. "We have a robust and unique set of core assets at
Online Resources, and I believe that with the strong team we have in
place, we can deliver against the objectives defined in the plan.
However, because we have also been approached by other parties, the
Company has an obligation to examine other potential value-creating
alternatives that may now exist for our shareholders."
Given this announcement, the Company is postponing its 2011 analyst and
investor day event, previously scheduled for Thursday, January 27, 2011.
Online Resources currently hopes to provide additional information or
commentary in conjunction with the release of its financial results for
the fourth quarter of fiscal 2010, planned for early March. However, no
specific timetable has been set for completion of this evaluation and
there can be no assurance that any transaction will result from the
process. Online Resources does not intend to make any further comment
until its evaluation is complete.
The Company has retained Raymond James & Associates, Inc. as its
financial advisor and Kirkland & Ellis LLP as its legal counsel.
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 real-time 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.
Online Resources Corporation
Sr. Dir., Corp. Communications
EVP & Chief Financial Officer
Source: Online Resources Corporation
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