Online Resources Reports 38 Percent Income Growth

Online Resources Corp. (NASDAQ: ORCC), based in Chantilly, Va., recently reported strongly improved increases in net earnings and revenues in the third quarter compared to the same period a year ago.

Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure, was $8.2 million, an increase of 38 percent compared to $5.9 million in the prior year. Net income available to common stockholders was $1.1 million, or 4 cents per diluted share, compared to net loss of $3.4 million, or 13 cents per diluted share, in the prior year.

Core net income, a non-GAAP measure, was $2.3 million, or 8 cents per diluted share, compared to a loss of $37,000, or less than 1 cent per diluted share, in the prior year.

“Our solid results in the third quarter were due primarily to continued growth in transactions and consumer adoption of bill pay,” said Matthew P. Lawlor, Online chairman and chief executive officer, in a prepared statement. “Our sales pipeline showed early signs of opening up during the quarter with several key client signings, including many of our new products and service options.”

Online Resources doesn’t break out results for its Web-based collections products, the Virtual Collection Agent that allows select debtors the ability to negotiate their payments online.

Lawlor cited growth in bill pay as well as integration of the company’s Transactions Solutions acquisition as well as the launch of four new products as contributing to the company’s bottom line.

However, he admitted that his optimistic outlook “is tempered by a higher mix of volume-priced bill payments from large clients. We are also making some more conservative assumptions on the deployment of expedited payment services for banks and billers.”