Online Resources Posts Second Quarter 2004 Results

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2004 increased to $2.1 million, an increase of 102 percent compared to $1.1 million in second quarter 2003. Net income for the second quarter 2004 was $1.2 million, or $0.06 per share, compared to a loss of $148,000, or $(0.01) per share, in the prior year. Compared to the first quarter of 2004, users expanded from 926,000 to 972,000, consumer adoption of Internet banking services increased from 18.5 percent to 19.3 percent, and payment services adoption increased from 5.7 percent to 6.2 percent. The Company expanded its distribution channel to 687 financial institutions with the addition of 17 net new clients. 2004 Business Outlook The following statements are forward-looking and actual results may differ materially. The Company issued third quarter 2004 guidance for the first time. Based on changing cost and product mix expectations, the Company also adjusted full year 2004 guidance by increasing its midpoint earnings guidance by two cents per share and reducing its midpoint revenue guidance to the low end of its original 2004 guidance. Third Quarter 2004 -- Revenue is expected to be between $10.8 million and $11.3 million. -- Gross profit margin is expected to be between 60 percent and 62 percent. -- EBITDA is expected to be between $2.3 million and $2.8 million. -- Net income is expected to be between $0.07 and $0.09 per share based on a projected 20.2 million in fully diluted shares outstanding. Full Year 2004 -- Revenue is expected to be between $41.5 million and $42.5 million. -- Gross profit margin is expected to be between 59 and 61 percent. -- EBITDA is expected to be between $8.0 million and $8.8 million. -- Net income is expected to be between $0.20 to $0.24 per share based on a projected 20.2 million in fully diluted shares.