Online Resources Corp. said an acquisition boosted revenue, but accounting costs helped drive it into the red.
The Chantilly, Va., banking and bill-payment software company said Tuesday that first-quarter revenue increased 85% from a year earlier, to $30.8 million. However, it reported a net loss of $9.5 million, or 36 cents per share, including a charge of 41 cents a share for acquisition-related costs.
For the same quarter last year it reported net income of $800,000.
In July, Online Resources acquired Princeton eCom Corp., a rival bill-payment provider, for $180 million.
Matthew P. Lawlor, Online Resources' chairman and chief executive, said in a press release that the acquisition led to "strong" revenue growth, and that bill-payment volume through banks and credit unions rose 8% from the fourth quarter.
"Earnings metrics would also have been in the mid- to high-end of our guidance if we had not incurred approximately $400,000 in higher-than-expected accounting costs," Mr. Lawlor said.
For the second quarter, Online Resources expects to report revenue of $31.5 million to $33 million, a net loss of 4 to 6 cents a share, and core net income of 7 to 9 cents. For the full year, it expects to report revenue of $130 million to $136 million, a net loss of 35 to 42 cents, and core net income of 29 to 35 cents.
