McLEAN, Va. – Online Resources Corp. reported continuing profitability but a drop in revenue in the first three months of 2004 compared with the year-ago quarter. The provider of Internet banking and payment services said first quarter 2004 revenue was $9.8 million, compared with $11 million in the year-ago period, although that quarter included a one-time termination fee of $2.2 million. Net income for the first quarter 2004 was $419,000, or 2 cents per share. This compares to first quarter 2003 net income of $2.1 million, or 15 cents per share, and break even after adjusting for the one-time fee. "Financial performance was at the high end of both consensus analyst expectations and our guidance. The results were fueled by strong operating fundamentals across the board," said Matt Lawlor, chairman and CEO. Online Resources, which trades on the Nasdaq as ORCC, has added 49 new clients, bringing its total to 670. Consumer adoption of Internet banking services increased to 18.5% versus 16.8% in the fourth quarter of 2003. Payment services posted a 71 percent year-over-year increase in bill payment transactions, the company said.