Online Resources Signs New Agreement With California Federal Bank

Tuesday 15 January 2002 22:06 CET | News

Online Resources Corp., announced that it has extended and restructured its Internet financial services contract with California Federal Bank (``Cal Fed\) for another four years.

The Company reaffirmed its existing earnings guidance for 2002, and in an unrelated matter, also announced the resignation of its chief financial officer. Cal Fed, the Companys largest client, signed a new agreement with Online Resources through 2005. Under the new four-year outsourcing agreement, the Company will continue to provide its full set of services through mid to late 2002, and will provide only its electronic bill presentment and payment (EBPP) services through 2005. The approximate effect of Cal Fed bringing the Companys banking and related customer support services under its control would be to reduce the Companys revenue by 7% and its gross profit by 3%, based on reported 2001 year-to-date results adjusted for the new agreement.

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Categories: Payments & Commerce | Payments General
Countries: World
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