Headlines:
Digital Insight's Earnings Flat
Online banking and bill payment were the biggest sources of revenue in a so-so second quarter for Digital Insight Corp.
The Calabasas, Calif., company reported last week that net income was roughly flat from the same quarter last year, at $6.3 million, while revenue rose 18%, to $61.6 million.
Digital Insight said its income was dragged down by its tax rate, which rose 4.8 percentage points, to 41.6%, because a tax credit for research and development expired.
Its Internet banking line of business generated a profit of $19.5 million on $51 million of revenue. The lending line lost $435,000 on $2.8 million of revenue, and its business banking line generated a profit of $1 million on $7.9 million of revenue.
This quarter Digital Insight expects revenue to rise 15% to 16% from the third quarter of last year, to a range of $61 million to $61.5 million.
"Healthy growth in Internet banking and bill payment revenue led to predictable and profitable results that underscore the consistency" of the company's business model, Jeff Stiefler, its chairman, president, and chief executive, said in a press release.
Online Resources Revenue Up
The Chantilly, Va., online banking and bill payment provider Online Resources Corp. said its second-quarter revenue rose 21% from a year earlier, to $17.4 million, in part because of increased sales.
However, net income dropped 11%, to $1.4 million, Online Resources said last week.
In the first quarter Online Resources changed its accounting methods and began reporting "core net income," which measures its operating results using the same accounting method as it has in the past. In the second quarter that figure rose 31% from a year earlier, to $2.2. million.
Matthew P. Lawlor, the vendor's chairman and chief executive, said in a press release that it signed up 51 new banking clients in the second quarter, "the highest number of sales we have ever recorded in a quarter, outside of two wholesale partner conversions."
This month's purchase of the online bill payment provider Princeton eCom Corp. brought in 8 million more end users for Online Resources' services, Mr. Lawlor said. At the end of the second quarter it had 1.2 million banking service users, including 858,000 bill payment users, as well as 2.4 million card and credit product users.
