Online Resources Corp., a leading provider of online financial services, experienced a considerable cutback on its quarterly profit, attributed to a slow growth in bill pay transactions. The company recorded a net income of $3.5 million, much lower than the previous year's income of $14.3 million. The company pins the low sales on the three large acquisition-related client departures in 2007 and early 2008. Last year, Online Resources only recorded $1.9 million earnings, or a loss of 24 cents per diluted share for common shareholders. Revenue was reported at $37.2 million for the fourth quarter of 2008. Annual sales showed a sparse increase at $151.6 million from $135.1 million in 2007. Matthew Lawlor, chief executive officer, explained, “We finished the year well, with a substantial increase in cash flow and earnings from the third quarter of 2008. Despite the weakened economy, we signed five major deals this past quarter capping a record sales year as measured by total contract value. We also extended 11 major client contracts in the quarter and ended the year with a 100 percent renewal rate for large bank clients.”
