Online Resources Considering Alternatives to Board-Approved Strategic Growth Plan
January 21 2011 - 8:45AM
Business Wire
Online Resources Corporation (Nasdaq: ORCC), a leading provider
of online financial services, today announced that its Board of
Directors is evaluating unsolicited expressions of interest in
potential business combinations that it has received from third
parties. The Board is considering these alternatives against the
long-term strategic growth plan that it recently approved in order
to determine whether there is now an option that can deliver
greater shareholder value. Under the strategic plan, the Company
has enhanced its management team and is currently investing in
technology, products and organizational structure to drive revenue
growth and margin improvement.
“Since I arrived as CEO in June, we have worked diligently to
develop a long-term plan to put Online Resources back on the path
to sustainable growth by investing in new ways to provide
exceptional value to our customers,” said Joseph Cowan, President
and Chief Executive Officer of Online Resources. “We have a robust
and unique set of core assets at Online Resources, and I believe
that with the strong team we have in place, we can deliver against
the objectives defined in the plan. However, because we have also
been approached by other parties, the Company has an obligation to
examine other potential value-creating alternatives that may now
exist for our shareholders.”
Given this announcement, the Company is postponing its 2011
analyst and investor day event, previously scheduled for Thursday,
January 27, 2011. Online Resources currently hopes to provide
additional information or commentary in conjunction with the
release of its financial results for the fourth quarter of fiscal
2010, planned for early March. However, no specific timetable has
been set for completion of this evaluation and there can be no
assurance that any transaction will result from the process. Online
Resources does not intend to make any further comment until its
evaluation is complete.
The Company has retained Raymond James & Associates, Inc. as
its financial advisor and Kirkland & Ellis LLP as its legal
counsel.
About Online Resources
Online Resources (Nasdaq: ORCC) powers financial interactions
between millions of consumers and the Company’s financial
institution and biller clients. Backed by its proprietary real-time
payments gateway that links banks directly with billers, the
Company provides web and phone-based financial services, electronic
payments and marketing services to drive consumer adoption. Founded
in 1989, Online Resources is the largest financial technology
provider dedicated to the online channel. For more information,
visit www.orcc.com.
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 and anticipation of future losses; the company's
dependence on the marketing efforts of third parties; the potential
fluctuations in the company's operating results; the company's
potential need for additional capital; the company's potential
inability to expand the company's services and related products in
the event of substantial increases in demand for these services and
related products; the company's competition; the company's ability
to attract and retain skilled personnel; the company's reliance on
the company's patents and other intellectual property; the early
stage of market adoption of the services it offers; consolidation
of the banking and financial services industry; and those 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.
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