ORCC Reports Black Ink for Fourth Quarter, Sees More Ahead

McLEAN, Va. – Online Resources Corp. made $1.5 million in the fourth quarter of 2002 and $3.6 million for the year, the Internet banking and payment services provider said. Those numbers – reported as earnings before interest, taxes, depreciation and amortization (EBITDA) – compared with EBITDA losses of $694,000 for the year-ago quarter and $6.5 million for 2001, ORCC officials said. “It was an outstanding quarter, capping a breakthrough year for Online Resources,” said company President Matt Lawlor. “We look forward to building on these results in 2003 and beyond.” Lawlor said he expects first-quarter 2003 EBITDA to be $2.6 million to $3 million and the year-end total to be $6.1 million to $6.9 million, nearly doubling 2002′s profits. “Our consumer adoption and billpay cross-sell programs are progressing nicely and our recent initiative to expand our institutional sales channel is beginning to show positive results,” Lawlor said. “We also renewed 106 client contracts during 2002 and expect to continue our success with renewals this year,” he said. He also noted that the company recorded its 29th-consecutive year-over-year quarterly revenue increase (a 27% percent increase to $8.5 million) and was named by Deloitte & Touche as one of the nation’s fastest growing technology firms. ORCC was founded in 1989 and currently serves more than 500 financial institutions with about 100 million transactions and $5 billion in consumer bill payments annually, the company said.