Online Resources Posts First Quarter 2006 Results

Online Resources Corporation, a leading provider of Internet financial services, today reported financial and operating results for the three months ended March 31, 2006.

The following results reflect the introduction in 2006 of equity compensation and tax expensing, which were not included in first quarter 2005 results. First quarter 2005 also benefited from three large clients who were acquired and departed from the Company?s platform.

• Revenue for the first quarter of 2006 was $16.7 million, up 11 percent from $15.1 million in first quarter 2005. After adjusting the 2005 period for the acquired clients, revenue would have increased 23 percent.
• Earnings before interest, taxes, depreciation and amortization (Ebitda), a non-GAAP measure, was $3.1 million, an 11 percent decline from $3.5 million in the prior year. After adjusting the 2005 period for the acquired clients, Ebitda would have increased an estimated 30 percent.
• Net income was $0.8 million, down 66 percent versus $2.2 million in the prior year. Net income per share was $0.03, down 70 percent versus $0.10 per share in 2005. After adjusting the 2005 period for the acquired clients and accounting changes, net income per share was up $0.02 per share over an estimated $0.01 per share in the prior year.
• Core net income, a non-GAAP measure, was $1.5 million, a 34 percent decrease versus $2.3 million in 2005. Core net income per share was $0.06 versus $0.11 in the prior year. After adjusting the 2005 period for the acquired clients and accounting changes, core net income per share was up $0.02 per share over an estimated $0.04 per share in 2005.

?Operating results were strong in the quarter, as we achieved the high end of our guidance for core earnings and exceeded First Call consensus,? stated Matthew P. Lawlor, chairman and chief executive officer of the Company. ?The Company got out of the blocks quickly this year with a record sequential increase in users of our banking and payment services. We took a big stride toward meeting our 2005 goal of doubling consumer billpay adoption by year-end 2007.?

Lawlor continued, ?We also proceeded with a planned expansion in development spending. These initiatives are beginning to pay-off, as reflected in the signing of a number of major clients.