Fourth Quarter 2008

• Revenue was $37.2 million, down 2 percent from $38.1 million in fourth quarter 2007, reflecting the departure of three large clients in late 2007 and early 2008.
• Ebitda, a non-GAAP measure adjusted for stock compensation and preferred stock accretion, was $9.6 million, compared to $10.3 million in the prior year.
• Net income available to common stockholders was $1.3 million or $0.04 per diluted share, compared to $12.1 million or $0.40 per diluted share in the prior period. Adjusted for tax valuation allowance benefits of $0.2 million in 2008 and $13.7 million in 2007, income was $1.1 million or $0.04 per diluted share, versus a loss of $1.6 million or $0.05 per diluted share in the prior year.
• Core net income, a non-GAAP measure, was $2.0 million versus $3.3 million in 2007. Core net income per share was $0.07 per share, down from $0.11 per share in 2007.
  

Full Year 2008

• Revenue was $151.6 million, a 12 percent increase from $135.1 million in 2007.
• Ebitda, a non-GAAP measure, was $32.7 million, the same as the prior year.
• Net loss available to common stockholders was $7.0 million or $0.24 per diluted share, compared to income of $2.6 million or $0.09 per diluted share in the prior period. Adjusted for tax valuation allowance benefits of $0.2 million in 2008 and $13.7 million in 2007, the loss was $7.1 million or $0.25 per diluted share, versus a loss of $11.1 million or $0.41 per diluted share in the prior year.
• Core net income, a non-GAAP measure, was $7.3 million, the same as the prior year. Core net income per share was $0.24 per diluted share, down from $0.25 per share in 2007.

"We finished the year well, with a substantial increase in cash flow and earnings from the third quarter of 2008," said Matthew P. Lawlor, chairman and chief executive officer of the Company. "Despite the weakened economy, we signed 5 major deals this past quarter capping a record sales year as measured by total contract value. We also extended 11 major client contracts in the quarter and ended the year with a 100 percent renewal rate for large bank clients."

"Year-over-year comparisons continue to be distorted by the cluster of large acquisition-related client departures in 2007 and early 2008. We believe we have now minimized this risk with our current client diversification and renewal schedules."

Lawlor added, "While client sales and renewals were strong, slower than expected billpay transaction growth impacted fourth quarter revenue. In response, we trimmed costs resulting in our maintaining sequential earnings growth. First quarter 2009 transaction growth started slowly but has picked up in the last month."

"We enter 2009 with a comfortable cash position and increased year-over-year cash flow and earnings expectations. Now half way through our five-year strategic plan, Online Resources has made appropriate mid-course corrections and is poised to leverage past shareholder investment in its series of transforming acquisitions."

Lawlor believes that the company's long-term risk-reward outlook continues to be favorable, stating that, "The huge negative impact of declining interest rates on our revenue growth has already occurred. Dilutive acquisition bank debt is being paid-off on schedule. Heavy incremental spending on new products is behind us. We are now getting these products into our distribution channels, gaining meaningful competitive advantages and benefiting from our recurring revenue business model."

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