Online Resources falls 23% after wider-than-expected Q2 loss
Shares of Online Resources Corporation (Nasdaq:ORCC) have skidded 23% in today’s trading after the company reported a wider second-quarter loss. For the quarter ended June 30, net loss was $3.2 million, or $0.11 per share, compared to a net loss of $1.2 million, or $0.04 per share for the same period a year earlier. Revenues grew 16% to $37.2 million.
“We are still seeing healthy growth, but we are not completely immune to struggles in the banking sector and the broader economy. Our challenges are straightforward: continue to expand distribution by taking advantage of our strong competitive position, accelerate revenue growth by implementing new clients faster, and leverage our clients’ increased focus on the web channel as an important tool to deal with a soft economy,” said Matthew P. Lawlor, chairman and CEO, in a statement after Tuesday’s close.
The Chantilly, Va.-based company provides outsourced Internet financial technology services. Shares are at $7.89 at 10:01 a.m. ET, down $2.37 from Tuesday’s close. During the past year, shares have ranged from $7.50 to $13.80. Trading volume is well below average today.
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