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 webbased 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."
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