Headlines:
Bill-Pay Boost for Digital Insight
Digital Insight Corp. said Thursday that second-quarter earnings climbed 28%, to $4.5 million or 13 cents per diluted share, thanks to strong growth in online bill payment.
But the Calabasas, Calif., provider of online banking software and services said revenue from its cash management software was disappointing.
Online banking revenue grew 19% as the number of users of its online bill payment software rose 46% and of its online banking offerings 22% from a year earlier.
"Our consumer Internet banking business continues to grow predictably and profitably, driven by healthy adoption trends, including another record quarter within online bill payment," said Jeff Stiefler, its chief executive, in a press release.
He noted that revenue from its cash management software and outsourced lending technology came short of expectations. Digital Insight acquired Magnet Communications Inc., an Atlanta vendor of cash management software, in November.
"Forecasts for the nonrecurring sources of Magnet's revenues underestimated the sales cycle in selling to large financial institutions as well as the potential delays in securing new business within existing client relationships," Mr. Stiefler said.
Digital Insight lowered its full-year revenue guidance to $188 million to $190 million, from $193 million to $197 million.
Corillian Earnings Jump 28%
Corillian Corp. of Portland, Ore., which makes online banking software, said second-quarter profit grew 28% from a year earlier, to $2.3 million, on an 8% rise in revenue, to $12.4 million.
Analysts projected per-share earnings of 5 cents; Corillian came in at 6 cents. The results were announced Wednesday.
During the quarter the company won what it said was the first contract to move a major bank from a homegrown online consumer banking system to a vendor's system. Wachovia Corp. of Charlotte plans to be using Corillian's by early 2006.
Also during the quarter, Corillian launched new products to provide alerts to customers and to detect online banking fraud.
The company projected third-quarter revenue of $12.5 million to $13.5 million and earnings of 6 to 8 cents per share. Before the announcement, analysts were estimating earnings of 6 cents on revenue of $13.2 million for the third quarter.
Online Resources Tops Forecast
The Internet banking outsourcer Online Resources Corp. of McLean, Va., earned $1.2 million in the second quarter, reversing a year-earlier loss.
The per-share figure was 6 cents; analysts had expected 4 cents. The company lost $148,000, or 1 cent a share, in last year's second quarter.
Revenue grew 20% from a year earlier, to $10.1 million, Online Resources reported Wednesday. Consumer end users of its services totaled 972,000 on June 30, 5% more than on March 31. That was 19.3% of consumers holding demand deposit accounts at client institutions, up from 18.5%. Seventeen net new clients brought the company's total to 687 banks, thrifts, and credit unions.
Online Resources projected third-quarter earnings of 7 cents to 9 cents per share and revenue of $10.8 million to $11.3 million. It raised its full-year earnings projection to 20 cents to 24 cents per share while reducing its revenue projection to $41.5 million to $42.5 million. Analysts had estimated third-quarter earnings of 6 cents per share on revenue of $11.2 million and full-year earnings of 21 cents on revenue of $43.6 million.
