Online Resources Corporation (Nasdaq: ORCC), a leading provider of web-based financial services, today announced that it has recognized an additional $11.6 million in net tax benefit to fourth quarter and full year 2007 net income available to common shareholders.
The Company has adjusted its previously disclosed results for the periods and filed its 2007 Annual Report on Form 10-K with the Securities and Exchange Commission.
Based on its earnings history and expectations over the next five years, the Company has determined that it is more likely than not to use the majority of its tax loss carry-forwards. As prescribed by SFAS No. 109, Accounting for Income Taxes, the Company has released most of its valuation allowance and has recognized an unreserved deferred tax asset of $33.8 million on its balance sheet dated December 31, 2007, out of a total remaining deferred tax asset of $39.7 million.
The $11.6 million additional benefit to earnings consists of a $13.7 million benefit from the Company's release of valuation allowance, offset by the reduction of goodwill by a $1.4 million state tax loss sale previously recognized as a tax benefit. The Company also recognized $700,000 in additional tax provision to reconcile state tax loss carry-forwards, which reduced core net income. All these adjustments are non-cash and the Company continues to pay no material cash taxes.
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