In an online banking roundup earlier this month, I reviewed five of the key players that are -- whether you know it or not -- the forces enabling you to bank through your computer keyboard, freeing you from standing in the teller line. The companies, once again, are:
(NASDAQ:CORI)and Sybase (NYSE:SY), both serving primarily the "big bank" market and vying for the affections of such heavyweight clients as Citigroup (NYSE:C)and JP Morgan (NYSE:JPM).
(NASDAQ:DGIN)and Online Resources (NASDAQ:ORCC), both of which concentrate on the "small banks" market.
(NASDAQ:SONE), which services both large and small clients.
Of the above, Sybase reported decent numbers for its fiscal first quarter on Tuesday; Digital Insight and Corillian are scheduled to report next week; S1 the week after. The fifth company, Online Resources reported its numbers on Wednesday, and those are what we'll look at now.
Based on its first-quarter results, Online Resources took an early lead in the race for the title of "most successful online banking software company." Now, granted, so far it hasn't been much of a contest, as Online Resources was competing with just one small division of the only other company to have reported so far (Sybase). And that division, "Financial Fusion," actually lost money for the quarter. So Online Resources is winning pretty much by default.
But even in the tougher contests still to come, Online Resources looks like the company to beat. Year-on-year, the company grew revenues by 55% and net profits by 450%. Impressive. Those numbers also move the company a long way toward meeting its fiscal 2005 goals of $55 million in revenues and $0.33 in profits per share. While it's probably not terribly accurate to expand out a single quarter's results into a full-year run rate, if we did do that, we could say that Online Resources is trending toward $60 million in revenue, $8 million in free cash flow, and $0.44 per share in profits (before stock options expensing).
Finally, speaking of options, Fools should be on the lookout for a massive increase in shares outstanding appearing in next quarter's report. Those won't, however, be from stock options. For the most part, share dilution over the next three months will result from a 4.4 million-share offering that was completed subsequent to the end of Q1.
For more Foolish news and views on Online Resources, read: