Altisource Portfolio Solutions (ASPS) 8-K Altisource Announces Second Quarter Results

Exhibit 99.1

FOR IMMEDIATE RELEASE	FOR FURTHER INFORMATION CONTACT:
	Robert D. Stiles
	Chief Financial Officer
	T: +352 2469 7903
	E: robert.stiles@altisource.lu

ALTISOURCE ANNOUNCES SECOND QUARTER RESULTS

Luxembourg, Luxembourg, 28 July 2011

Altisource (NASDAQ: ASPS) (the Company) recognized $144.2 million of Service Revenue for the six months ended June 30, 2011, a 30% increase over the same period in 2010. The Company sequentially grew Service Revenue in the second quarter through higher sales of Real Estate Owned (REO) properties, due to seasonality and expansion of the title insurance business. Sequential growth in Service Revenue was constrained by Financial Services, due to seasonality as well as completion of a temporary assignment in the first quarter, and by Mortgage Services due to decreased foreclosure referrals which resulted in reduced title search and default management services revenues.

For the third quarter, the Company expects modest growth in Service Revenue facilitated by seasonally strong REO sales and continued growth of the title insurance operations. For the fourth quarter, Altisource expects substantially greater growth in Service Revenue assuming Ocwen Financial Corporation (Ocwen) concludes its acquisition of the Litton platform and the Company’s continued roll-out of its title insurance services.

Income before income tax attributable to Altisource (Pretax Income) grew in both periods over the comparable periods in 2010 principally as a result of the development of mortgage and real estate portfolio management services and the growth of Ocwen’s servicing portfolio. Sequentially, Pretax Income declined $1.3 million due to increased investments in personnel and technology to support the Company’s growth initiatives, initial investments in infrastructure to support the acquisition by Ocwen of the Litton portfolio and the seasonal decline in Financial Services revenue.

For the third quarter, Altisource expects initiatives to support the Litton portfolio and investment in technology will limit margin expansion. The Company continuously undertakes process improvement initiatives focused on margin enhancement of fully deployed services and believes implementation of business process management software, deployment of next generation REALSuite software and leveraging of fixed costs on higher referral volume will facilitate continued growth in margins over the longer term.

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Financial Results

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands, except per share data)	2011			2010			2011			2010
Service Revenue	$	72,504		$	58,910		$	144,234		$	110,566
Reimbursable Expenses		19,459			11,141			35,100			19,671
Cooperative Non-controlling Interest		1,305			1,297			2,604			2,084
Total Revenue		93,268			71,348			181,938			132,321
Cost of Revenue		43,638			33,234			82,946			64,058
Reimbursable Expenses		19,459			11,141			35,100			19,671
Gross Profit		30,171			26,973			63,892			48,592
Selling, General and Administrative Expenses		13,904			12,476			30,158			24,545
Income from Operations		16,267			14,497			33,734			24,047
Other Income (Expense), net		270			40			614			(32	)
Income before Income Taxes and Non-controlling Interests		16,537			14,537			34,348			24,015
Income Tax (Provision) Benefit		(1,847	)		3,107			(3,534	)		722
Net Income		14,690			17,644			30,814			24,737
Net Income Attributable to Non-controlling Interests		(1,305	)		(1,297	)		(2,604	)		(2,084	)
Net Income Attributable to Altisource	$	13,385		$	16,347		$	28,210		$	22,653
Earnings Per Share:
Basic	$	0.54		$	0.65		$	1.14		$	0.91
Diluted	$	0.52		$	0.62		$	1.09		$	0.87
Weighted Average Shares Outstanding:
Basic		24,625			25,226			24,734			24,960
Diluted		25,773			26,247			25,851			25,965
Transactions with Related Parties:
Revenue	$	53,694		$	35,784		$	102,484		$	65,035
Selling, General and Administrative Expenses	$	455		$	264		$	846		$	588

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Revenue

The following table presents Total Revenue by segment:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2011			2010			2011			2010
Mortgage Services
Service Revenue	$	45,513		$	31,001		$	88,853		$	54,714
Reimbursable Expenses		18,689			10,367			33,757			18,249
Cooperative Non-controlling Interest		1,305			1,297			2,604			2,084
Mortgage Services — Total Revenue		65,507			42,665			125,214			75,047
Financial Services
Service Revenue		17,213			19,117			36,133			38,514
Reimbursable Expenses		770			774			1,343			1,422
Financial Services — Total Revenue		17,983			19,891			37,476			39,936
Technology Services		13,572			12,485			26,288			24,459
Eliminations		(3,794	)		(3,693	)		(7,040	)		(7,121	)
Total Revenue	$	93,268		$	71,348		$	181,938		$	132,321

Income Before Income Tax and Pretax Income

The following table presents income before income tax including amounts attributable to Altisource by segment:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2011			2010			2011			2010
Mortgage Services:
Income Before Income Taxes	$	19,368		$	12,228		$	37,837		$	20,877
Non-controlling Interests		(1,305	)		(1,297	)		(2,604	)		(2,084	)
Pretax Income	$	18,063		$	10,931		$	35,233		$	18,793
As percent of Service Revenue		40	%		35	%		40	%		34	%
Financial Services:
Income Before Income Taxes	$	900		$	1,640		$	2,434		$	3,043
As percent of Service Revenue		5	%		9	%		7	%		8	%
Technology Services:
Income Before Income Taxes	$	2,689		$	4,483		$	6,749		$	8,692
As percent of Revenue		20	%		36	%		26	%		36	%
Corporate:
Loss Before Income Taxes	$	(6,420	)	$	(3,814	)	$	(12,672	)	$	(8,597	)
Consolidated:
Income Before Income Taxes	$	16,537		$	14,537		$	34,348		$	24,015
Non-controlling Interests		(1,305	)		(1,297	)		(2,604	)		(2,084	)
Pretax Income	$	15,232		$	13,240		$	31,744		$	21,931
As percent of Service Revenue		21	%		22	%		22	%		20	%

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Income Tax Provision

The Company recognized an income tax provision of $3.5 million for the six months ended June 30, 2011 representing an effective tax rate of 10.3%. The income tax provision computed by applying the Luxembourg statutory tax rate of 28.8% differs from the effective tax rate primarily because of the effect of the favorable tax ruling as well as the mix of income and losses in multiple taxing jurisdictions. The Company received a favorable ruling in June 2010 regarding the treatment of certain intangibles that exist for purposes of determining the Company’s taxable income. The ruling was retroactive to the Company’s separation from Ocwen in August 2009. As a result of the ruling, the Company recognized a $3.4 million credit attributable to 2009 as well as adjusted the year to date tax provision to the new effective tax rate of 12.5% in the second quarter 2010 which resulted in a credit of $0.7 million for the six months ended June 30, 2010.

Stock Repurchase Update

For the six months ended June 30, 2011 the Company repurchased 0.4 million shares (0.2 million shares during the second quarter) of common stock on the open market at an average price of $30.94. Since inception of the stock repurchase program, 1.0 million shares of common stock have been repurchased on the open market at an average price of $28.51.

Forward-Looking Statements

This press release contains forward-looking statements that involve a number of risks and uncertainties. Those forward-looking statements include all statements that are not historical fact, including statements about our management’s beliefs and expectations. Forward-looking statements are based on management’s beliefs as well as assumptions made by and information currently available to management. Because such statements are based on expectations as to future economic performance and are not statements of historical fact, actual results may differ materially from those projected. The Company undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to: Altisource’s ability to retain existing customers and attract new customers; general economic and market conditions; governmental regulations, taxes and policies; availability of adequate and timely sources of liquidity and other risks and uncertainties detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of the Company’s Form 10-K and other filings with the Securities and Exchange Commission.

Webcast

Altisource will host a webcast at 11:00 a.m. Eastern today to discuss second quarter results. A link to the live audio web cast as well as an accompanying slide deck will be available on our website through the Investor Relations home page. Those who want to listen to the call should go to the website fifteen minutes prior to the call to register, download and install any necessary audio software. A replay of the conference call will be available via our website approximately two hours after the conclusion of the call.

About Altisource

Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) is a provider of services focused on high-value, technology-enable knowledge-based solutions principally related to real estate and mortgage portfolio management, asset recovery and customer relationship management. Additional information is available atwww.altisource.com.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Dollars in thousands, Except Per Share Data)

	June 30,			December 31,
	2011			2010
ASSETS
Current Assets:
Cash and Cash Equivalents	$	35,032		$	22,134
Accounts Receivable, net		52,495			53,495
Prepaid Expenses and Other Current Assets		4,405			13,076
Deferred Tax Assets, net		633			551
Total Current Assets		92,565			89,256
Restricted Cash		1,222			1,045
Premises and Equipment, net		16,814			17,493
Deferred Tax Assets, net		490			1,206
Intangible Assets, net		69,269			72,428
Goodwill		12,537			11,836
Investment in Equity Affiliate		3,328			—
Other Non-current Assets		6,824			4,536
Total Assets	$	203,049		$	197,800
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable and Accrued Expenses	$	27,625		$	35,384
Capital Lease Obligations — Current		651			680
Other Current Liabilities		3,574			5,616
Total Current Liabilities		31,850			41,680
Capital Lease Obligations — Non-current		541			852
Other Non-current Liabilities		2,782			3,370
Commitments and Contingencies
Equity:
Common Stock ($1.00 par value; 100,000 shares authorized; 25,413 shares issued and 24,586 outstanding in 2011; 25,413 shares issued and 24,881 outstanding in 2010)		25,413			25,413
Retained Earnings		84,744			58,546
Additional Paid-in-Capital		80,676			79,297
Treasury Stock, at cost ($1.00 par value; 827 and 532 shares in 2011 and 2010, respectively)		(24,442	)		(14,418	)
Altisource Equity		166,391			148,838
Non-controlling Interests		1,485			3,060
Total Equity		167,876			151,898
Total Liabilities and Equity	$	203,049		$	197,800

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