Online Resources Reports Lower Earnings
CHANTILLY, Va. (07/25/06) -- First-time accounting for equity compensation and tax expensing pushed down net income at Online Resources Corp. by 11% for its second quarter to $1.4 million, or five cents a share, the Internet services provider reported Monday. Revenues rose a strong 21% to $17.4 million, compared to the same period last year. For the first six months of the fiscal year, Online Resources reported a decline in net income of 42% to $2.2 million, or eight cents a share, compared to the first half in 2005. The company stated that the financials for this year and last year are not comparable because it had a $13.7 million tax benefit last year which added to its net income; the tax rates are different; and this year's financial include equity compensation for the first time. For the first six months, revenues rose 16%, to $34.1 million, compared to last year's first half. During the second quarter Online Resources completed the acquisition of electronic bill payment and presentment service provider Princeton eCom, for $190 million.