Online Collection Firm Online Resources Reports Added Income

Online Resources Corp. (Nasdaq: ORCC), a provider of web-based financial services, today reported that it recognized an additional $11.6 million in net tax benefit to fourth quarter and full year 2007 net income.

ORCC said the $11.6 million additional benefit to earnings consists of a $13.7 million benefit from the company’s release of valuation allowance, offset by the reduction of goodwill by a $1.4 million state tax loss sale previously recognized as a tax benefit.

ORCC also recognized $700,000 in additional tax provision to reconcile state tax loss carry-forwards, which reduced core net income. All adjustments are non-cash.

The company said it has adjusted its previously disclosed results for the periods ("Online Resources Shows Profit for Quarter, Loss for Year," Feb. 22), and that it is not likely to use the majority of its tax loss carry-forwards based on its earnings history and expectations over the next five years. Online Resources said this will result in an unreserved deferred tax asset of $33.8 million on its year-end 2007 balance sheet.

Online Resources does not provide specifics on its Web-based online debt collection unit, the Virtual Collection Agent, which it markets to creditors and third-party collectors.