I wanted to follow-up on the mentions of Online Resources inThe Credit Union Journal Daily (www.cujournal.com). I appreciate The Journal's reporting of my company's financial progress and our sales success. The credit union community is important to us, so we are always pleased to be able to serve more of them through new partnerships or service agreements.
However, I'm concerned that the linking of two very separate events the news of our improved balance sheet and the news of our recent bill payment implementation for Corporate Network eCom resulted in a correlation that is simply not correct.
While I respect your effort to restate our position with regard to Nasdaq in your June 19th piece, the headline, "U.S. Central Breathes New Life Into Online Resources," implies that my company has been in financial trouble. On the contrary, Online Resources has enjoyed profitability since late last year and continues to report steady, high revenue growth.
In addition, the headline and article infer that our contract with Corporate Network eCom not its holding company had somehow positioned Online Resources to be able to conduct recent financial transactions that resulted in our strengthened balance sheet and the avoidance of a potential move to Nasdaq's Small Cap market (not a "de-listing"). This is clearly not the case. While it is always a good sign to investors when companies gain a healthy dose of new business, it is far from being the cause for a sizeable private placement of shares. Further, nowhere in Nasdaq's listing requirements is there a condition requiring a sizeable new business contract.
For the record, Online Resources now knows that it is in compliance with Nasdaq's requirements for continuing on their National Market; they've told us so. The requirement was not a tangible net asset test, which Nasdaq abandoned in November of last year. It is a significantly higher shareholders' equity test, which impacted many companies in addition to Online Resources.
Company name and location inaccuracies aside, I imagine two separate pieces that tackled the events separately would have been a more precise and efficient alternative for your readers, your publication and Online Resources.
Director, Corporate Communications
Online Resources Corp., Virginia