Altisource Portfolio Solutions (ASPS) 8-K Altisource Announces Third 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 THIRD QUARTER RESULTS

Luxembourg, Luxembourg, 27 October 2011

Altisource™ (NASDAQ: ASPS) today reported Net Income Attributable to Altisource of $17.2 million or $0.67 per diluted share for the quarter ended September 30, 2011. This compares with Net Income Attributable to Altisource of $9.8 million or $0.37 per share for the quarter ended September 30, 2010.

Service Revenue for the third quarter was $86.2 million, up 39% compared to the third quarter of 2010.

Third quarter highlights include:

• Average loans serviced by the Company’s largest customer Ocwen^® on the REALServicing^® platform of 516,214 for the quarter.

• Generated cash flow from operations for the third quarter of $30.6 million representing $0.35 for every dollar of Service Revenue in the quarter.

• Acquired 644,462 shares of stock under the stock repurchase program at an average price of $35.08 in the quarter.

• Completed the investment of $15.0 million in Correspondent One S.A.

Gross margin remained flat when compared to the quarter ended June 30, 2011 as the increase in gross margin attributable to Technology Services was offset by a decline in gross margin attributable to Mortgage Services. This was due to Mortgage Services segment’s mix of services and the build out of infrastructure to support Ocwen’s September 1, 2011 boarding of the Litton portfolio. As a result of the boarding of the Litton portfolio, Altisource delivered in the quarter a proportionately higher percentage of services to homes in pre-foreclosure. For these services, the margins are generally lower. The delivery of pre-foreclosure services, however, is a strong leading indicator of future referrals of higher margin foreclosure and asset management services.

From an operating margin perspective, margins for the total Company improved in the quarter when compared to the quarter ended June 30, 2011 by 300 basis points to 25% of Service Revenue. This reflects faster growth in the higher margin Mortgage Services segment as well as leveraging of the Corporate infrastructure.

For the fourth quarter, Service Revenue should continue to improve when compared to the third quarter based principally upon the expected growth in foreclosure and asset management related referrals.

Financial Results, Unaudited

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands, except per share amounts)	2011			2010			2011			2010
Service Revenue	$	86,169		$	62,159		$	230,403		$	172,725
Reimbursable Expenses		21,833			13,369			56,933			33,040
Cooperative Non-controlling Interest		1,791			2,052			4,395			4,136
Total Revenue		109,793			77,580			291,731			209,901
Cost of Revenue		51,506			35,544			134,452			99,602
Reimbursable Expenses		21,833			13,369			56,933			33,040
Gross Profit		36,454			28,667			100,346			77,259
Selling, General and Administrative Expenses		15,329			14,730			45,487			39,275
Income from Operations		21,125			13,937			54,859			37,984
Other Income (Expense), net		(320	)		698			294			666
Income Before Income Taxes and Non-controlling Interests		20,805			14,635			55,153			38,650
Income Tax Provision		(1,843	)		(2,751	)		(5,377	)		(2,029	)
Net Income		18,962			11,884			49,776			36,621
Net Income Attributable to Non-controlling Interests		(1,791	)		(2,052	)		(4,395	)		(4,136	)
Net Income Attributable to Altisource	$	17,171		$	9,832		$	45,381		$	32,485
Earnings Per Share:
Basic	$	0.71		$	0.39		$	1.84		$	1.30
Diluted	$	0.67		$	0.37		$	1.76		$	1.24
Weighted Average Shares Outstanding:
Basic		24,341			25,318			24,602			25,080
Diluted		25,489			26,544			25,720			26,168
Transactions with Related Parties:
Revenue	$	63,827		$	39,459		$	166,311		$	104,494
Selling, General and Administrative Expenses	$	506		$	223		$	1,352		$	811

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Revenue

The following table presents Total Revenue by segment:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands)	2011			2010			2011			2010
Mortgage Services:
Service Revenue	$	58,915		$	34,909		$	147,768		$	89,623
Reimbursable Expenses		21,464			12,562			55,221			30,811
Cooperative Non-controlling Interest		1,791			2,052			4,395			4,136
Mortgage Services — Total Revenue		82,170			49,523			207,384			124,570
Financial Services:
Service Revenue		16,934			18,132			53,067			56,646
Reimbursable Expenses		369			807			1,712			2,229
Financial Services — Total Revenue		17,303			18,939			54,779			58,875
Technology Services		14,827			12,963			41,115			37,422
Eliminations		(4,507	)		(3,845	)		(11,547	)		(10,966	)
Total Revenue	$	109,793		$	77,580		$	291,731		$	209,901

Income Before Income Tax and Pretax Income

The following table presents income attributable to Altisource before income tax (Pretax Income) including amounts by segment:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands)	2011			2010			2011			2010
Mortgage Services:
Income Before Income Taxes	$	22,554		$	14,928		$	60,391		$	35,805
Non-controlling Interests		(1,791	)		(2,052	)		(4,395	)		(4,136	)
Pretax Income	$	20,763		$	12,876		$	55,996		$	31,669
As Percent of Service Revenue		35	%		37	%		38	%		35	%
Financial Services:
Income Before Income Taxes	$	350		$	368		$	2,784		$	3,411
As Percent of Service Revenue		2	%		2	%		5	%		6	%
Technology Services:
Income Before Income Taxes	$	4,359		$	4,090		$	11,108		$	12,782
As Percent of Revenue		29	%		32	%		27	%		34	%
Corporate:
Loss Before Income Taxes	$	(6,458	)	$	(4,751	)	$	(19,130	)	$	(13,348	)
Consolidated:
Income Before Income Taxes	$	20,805		$	14,635		$	55,153		$	38,650
Non-controlling Interests		(1,791	)		(2,052	)		(4,395	)		(4,136	)
Pretax Income	$	19,014		$	12,583		$	50,758		$	34,514
As Percent of Service Revenue		22	%		20	%		22	%		20	%

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Stock Repurchase Update

For the nine months ended September 30, 2011 the Company repurchased 1.0 million shares (0.6 million shares during the third quarter) of common stock on the open market at an average price of $33.53. Since inception of the stock repurchase program, 1.7 million shares of common stock have been repurchased on the open market at an average price of $31.02.

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 third 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-enabled 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)

	September 30,			December 31,
	2011			2010
ASSETS
Current Assets:
Cash and Cash Equivalents	$	21,250		$	22,134
Accounts Receivable, net		50,239			53,495
Prepaid Expenses and Other Current Assets		6,793			13,076
Deferred Tax Asset, net		2,328			551
Total Current Assets		80,610			89,256
Restricted Cash		1,222			1,045
Premises and Equipment, net		22,626			17,493
Deferred Tax Asset, net		—			1,206
Intangible Assets, net		67,066			72,428
Goodwill		14,915			11,836
Investment in Equity Affiliate		14,645			—
Other Non-current Assets		8,645			4,536
Total Assets	$	209,729		$	197,800
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable and Accrued Expenses	$	33,697		$	35,384
Capital Lease Obligations — Current		643			680
Other Current Liabilities		8,151			5,616
Total Current Liabilities		42,491			41,680
Capital Lease Obligations — Non-current		345			852
Deferred Tax Liability, net		539			—
Other Non-current Liabilities		2,679			3,370
Commitment and Contingencies
Equity:
Common Stock ($1.00 par value; 100,000 shares authorized; 25,413 shares issued and 23,979 outstanding in 2011; 25,413 shares issued and 24,881 outstanding in 2010)		25,413			25,413
Retained Earnings		100,984			58,546
Additional Paid-in-Capital		81,406			79,297
Treasury Stock, at cost ($1.00 par value; 1,434 and 532 shares in 2011 2010, respectively)		(46,171	)		(14,418	)
Altisource Equity		161,632			148,838
Non-controlling Interests		2,043			3,060
Total Equity		163,675			151,898
Total Liabilities and Equity	$	209,729		$	197,800

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