OLATHE, Kan. – NIC Inc. (Nasdaq: EGOV), a provider of e-government services to 21 states, including Rhode Island, and hundreds of local governments, today reported a third-quarter profit of $3.8 million, or 52 percent more than a year ago, on total revenue of $21.6 million. Earnings per share were 6 cents.
Results for the three months ended Sept. 30 included a gain of $500,000 on the sale of NIC’s 12-percent stake in the London-based e-Government Solutions Ltd., and a $500,000 reduction in income-tax expense. Excluding those items, net income would have been $2.8 million, a 12-percent increase from the 2006 third quarter’s $2.5 million, and earnings per share would have been flat at 4 cents.
Quarterly portal revenue surged to a record $20.7 million, 20 percent more than in the 2006 third quarter, NIC said. It credited strong performances from business licensing, vehicle registration and hunting and fishing license services.
Same-state portal revenue grew 19 percent year-over year, compared with the 2006 third quarter’s year-over-year increase of 8 percent. Same-state revenue from Department of Motor Vehicles transactions grew 11 percent in the third quarter, compared with a year ago, after edging up 1 percent in the 2006 period. Non-DMV same-state transaction revenue rose 31 percent from year-ago levels, accelerating from the 2006 third quarter’s 26-percent growth
“Non-DMV services continue to grow strongly,” CEO Jeff Fraser said in a statement. “A key component of our strategic growth initiative is to increase revenues from non-DMV services, and this quarter’s numbers are a good indicator that we continue to meet this objective.”
During the third quarter, NIC launched 83 new non-DMV revenue-generating services nationwide. An all-time high of 178 applications are now in the development pipeline, the company said.
Another highlight was the signing in August of a new long-term contract with the State of Rhode Island, with possible extensions through 2012. (READ MORE)
“We continue to see benefits from our strategic growth investments,” said Harry Herington, NIC’s president. “Our portals are exceeding our goals for non-DMV revenue, and the sales pipeline continues to develop according to our expectations.” For all of 2007, the company estimated the cost of those initiatives will total $4 million to $5 million.
NIC Inc. (Nasdaq: EGOV) – based in Olanthe, Kan. – builds and manages official government Web sites and e-government services for states and communities nationwide, most of them on a self-funded model. NIC has 350 employees and annual revenue of $71.4 million. To learn more, visit www.nicusa.com.
