Online Resources Reduces Losses

Online Resources Corp. (Nasdaq: ORCC), a provider of web-based financial services, reported a net loss of $3.6 million, or 12 cents per share, compared to a net loss of $9.5 million, or 36 cents per share, in the comparable year ago period.

Revenue increased to $39.2 million, up 27 percent from the $30.8 million in the first quarter of 2007.

The company had earlier cautioned investors that its interest income would be softer in 2008 due to the Federal Reserve’s reduction in interest rates, but expected to start benefiting from new clients added in late 2007 by the second half of this year (“Online Resources Shows Profit for Quarter, Loss for Year,” Feb. 22).

Online Resources did not provide specifics on its online debt collection unit, the Virtual Collection Agent, which it markets to creditors and third-party collectors. 

“It was a quarter executed well,” said Online Resources chairman and CEO Matthew P. Lawlor in a prepared statement. “The benefits of our uniquely integrated payment network, which links financial institutions with billers, is beginning to resonate across our market. Our divisions are performing well, particularly with e-commerce transaction growth.”

Lawlor cautioned that the weak economy poses some threats, though he didn’t expand on that comment.