Princeton eCom Deal Pushes Online Resources into the Red

CHANTILLY, Va. – Online Resources Corp. reported yesterday that last year’s acquisition of Princeton eCom pushed the company into the red for both its fourth quarter and fiscal year. The company reported a net loss of $2.7 million, or 11 cents a share for the fourth quarter, compared to a $16.5 million, or 60 cents a share profit for the fourth quarter in 2005. Fourth quarter revenues, fueled by the Princeton eCom acquisition, rose 86% to $29.4 million, compared to the fourth quarter in 2005. But the $190 million deal for Princeton eCom loaded down Online Resources with debt, costing $3 million in debt service for the fourth quarter, and almost $6 million for the year. Online Resources announced Wednesday it had refinanced $85 million of the senior secured debt related to the deal at a lower rate, which will save it on debt service costs. For the full year, Online Resources reported a 52% rise in revenues, to $91.7 million, because of the Princeton eCom deal, and a loss of $4 million, or 16 cents a share.