Headlines:
Online Resources Ups Guidance
Online Resources Corp. raised its earnings guidance, citing a stronger sales outlook for the first quarter and the rest of the year.
The Chantilly, Va., vendor announced that it expects net income of $1.5 million to $1.7 million for the current quarter, or 2 to 3 cents a share. In mid-February it had projected earnings of $1.3 million to $1.6 million, or 1 to 2 cents a share.
Revenue for the quarter, formerly $13.9 million to $14.3 million, is now $14.5 million to $14.7 million.
Projections for the year were raised slightly. Net income is expected to be in the range of $6.5 million to $7.2 million, or 30 to 33 cents a share, rather than the earlier projection of $6.4 million to $7.1 million or 30 to 33 cents a share.
Revenue should be $56.5 million to $58 million; the projection had been $55.5 million to $57.5 million.
"Our first quarter is shaping up better than expected," chairman and chief executive Matthew P. Lawlor said in a press release.
The company still projects a sequential decline in revenue and earnings in the second quarter because of the departure of several clients, but Mr. Lawlor said he expects growth to resume after that.
Last month Online Resources announced plans to raise $35 million to $40 million by selling 4.1 million shares in a secondary stock offering. The date for that offering has not been set.
Digital Insight Payroll Offering
Digital Insight Corp. plans to offer online payroll processing that its bank customers can offer to their small-business customers
The Calabasas, Calif., outsourcing provider announced Thursday that it had signed an agreement under which PayCycle Inc. of Palo Alto, Calif., will handle the payroll service.
Digital Insight said institutions have the option to include payroll as an integrated feature of their online cash management or as a stand-alone offering. It said PayCycle is the only self-service small-business payroll system that offers complete support for tax deposits and filings in all 50 states and the District of Columbia.
Bryan Laws, Digital Insight's director of business solutions, said in an interview Friday that he expects offering the payroll service would help institutions build relationships with small businesses and "strengthen the perception of the bank as a distribution point" for other products and services.
Digital Insight plans to offer the service initially to the 1,700 institutions that use its online banking service, including its 560 cash-management clients. It will also be used as a lure for other offerings from Digital, Mr. Laws said.
