ONLINE RESOURCES PROVIDES ANALYST DAY HIGHLIGHTS
CHANTILLY, Va., September 26, 2005
Online Resources Corp. (NASDAQ: ORCC), a leading outsourcer of Internet financial services, announced highlights of its investment Analyst Day event held at its headquarters on Friday, September 23, 2005.
The Company outlined key goals and areas of potential growth as follows:
- For the next several years, the goal is to double consumer bill payment adoption and introduce new premium products in the bank and credit union distribution channels;
- Over the mid-years, the Company is looking for growth in new card and credit-based products, particularly its web-based collections and card payments inquiry services;
- For the out-years, growth plans center on e-commerce applications of patented real-time debit capabilities, particularly for biller direct and stored-value funding;
- The Company is also focusing on building its market share, and expects to augment organic growth with acquisitions;
- Financial goals for year-end 2008 include organic revenue growth of 20 percent or more, gross margin of 60-63 percent and operating (EBIT) margin of 22-25 percent.
In addition to these strategic growth plans and goals, the Company addressed the following:
- Due to its financial restatement, the Company expects to continue reporting on a non-taxed basis, and will not tax-adjust earnings until mid- or late-2006 at the earliest;
- It expects to sign a financial institution with $1 billion in assets for Internet banking in third quarter;
- By the end of 2006, the Company expects that the percentage of its clients offering free bill payment will be approximately 70 percent, up from the present 56 percent;
- The Company expects that its current mix of new clients that convert from some other platform will increase, to perhaps as high as 70 percent over the next several years;
- Adoption goals were reiterated, with Internet banking targeted at 35 to 40 percent, and billpay adoption targeted at 14 to 18 percent in the YE06-YE07 timeframe;
- Security systems are being expanded to include end-to-end data encryption, two-factor authentication, alerts and additional detection tools;
- Pilot results of the new web-based Collections product with a top-3 card issuer indicated over 300 basis point improvement in collections versus the control group;
- The Company's new web-based card payment inquiry service is now being piloted with a top-5 debit card issuer;
- A specialized government payments provider is piloting the Company's patented e-commerce pin-less real-time debit capability.
Analyst Day presentation slides are available on the Company's web site at www.orcc.com.
About Online Resources
Online Resources powers Internet financial services for over 700 firms
nationwide. The Company's proprietary account presentation, payment, relationship
management and professional services are branded to its client banks,
credit unions, card issuers and payment acquirers. The Company serves
over three million consumer end-users and processes over $12 billion in
payments annually. Founded in 1989, Online Resources (Nasdaq: ORCC, Website:
www.orcc.com) has been widely recognized as one of the nation's fastest
growing technology firms.
This news release contains statements about future
events and expectations, which are "forward-looking statements."
Any statement in this release that is not a statement of historical fact
may be deemed to be a forward-looking statement. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the Company's actual results, performance or achievements
to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Specifically
factors that might cause such a difference include, but are not limited
to the Company’s: history of losses; dependence on the marketing
efforts of third parties; potential fluctuations in operating results;
ability to make and successfully integrate acquisitions of new businesses;
potential need for additional capital; potential inability to prevent
systems failures and security breaches; potential inability to expand
services and related products in the event of substantial increases in
demand; competition; ability to attract and retain skilled personnel;
reliance on patents and other intellectual property; exposure to the early
stage of market adoption of the services it offers; exposure to the consolidation
of the banking and financial services industry; and additional risks and
uncertainties discussed in filings made by the Company with the Securities
and Exchange Commission, including those risks and uncertainties contained
under the heading "Risk Factors" in the Company's Form 10-K,
latest 10-Q, and S-3 as filed with the Securities and Exchange Commission.
These factors should be considered in evaluating the forward-looking statements,
and undue reliance should not be placed on such statements.
Media Contact: Beth Halloran,
Director, Corporate Communications
Online Resources Corporation
703.653.2248
bhalloran@orcc.com
Investor Contact: Catherine Graham,
EVP & Chief Financial Officer
703.653.3155
cgraham@orcc.com
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