NIC NEWS RELEASE
The eGovernment Company
FOR IMMEDIATE RELEASE
Contact: Steve Kovzan
VP - Financial Operations
913-498-3468
[email protected]
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NIC REFINES OUTLOOK
Company completes restructuring and communicates investment plans for 2001
OVERLAND PARK, Kan. - (October 6, 2000) - NIC (Nasdaq: EGOV), the world's
leading eGovernment solutions provider, today announced it has completed the
restructuring of its eGovernment market and product development operations. The
company also stated that it has refined its 2001 outlook and projects it will
likely not generate positive EBITDA until 2002 because of investments in local
portals, its AOL/Government Guide partnership, and continued market and core
technology development across its eGovernment businesses.
Jim Dodd, NIC's President & CEO said, "Our opinion at the time of our
restructuring announcement was that targeted cost cuts could keep us on a
long-standing plan for 2001 positive EBITDA generation and allow us to pursue
our most promising expansion initiatives. We were wrong. We have completed new
business plans for NIC Commerce and NIC Technologies that envision these
operations as providing the core technology and deployment base for eGovernment
partnerships and installations around the world. The cost of repositioning these
businesses, coupled with our commitment to developing long-term, higher margin
recurring revenue bases in additional states, local markets, and
cross-governmental portals such as Government Guide, will push positive EBITDA
generation to 2002."
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"We are extremely disappointed with our recent business forecasting misses, and
have taken steps to assure the timeliness and reliability of guidance going
forward," stated Dodd. "This more conservative guidance following our
restructuring is the first step in that direction."
The company stated its cash position remains very strong and is sufficient to
fund each of its major growth initiatives through to profitability.
ABOUT NIC
NIC is the world's most experienced eGovernment solutions provider, dedicated to
positively transforming the relationships among citizens, businesses and
government. Through federal, state, local and global government partnerships,
NIC manages millions of transactions and hundreds of applications that are
accessible to more than 160 million people worldwide. For more information,
visit NIC at www.nicusa.com.
Special Note: The statements in this release regarding continued implementation
of NIC's business model and its development of new products and services are
forward-looking statements. There are a number of important factors that could
cause actual results to differ materially from those suggested or indicated by
such forward-looking statements. These include, among others, the success of the
Company in signing contracts with new states and government agencies, including
continued favorable government legislation; NIC's ability to develop new
services; existing states and agencies adopting those new services; acceptance
of eGovernment solutions by businesses and citizens; competition; and general
economic conditions and the other important cautionary statements and risk
factors described in NIC's Annual Report on Form 10-K filed on March 10, 2000
with the Securities and Exchange Commission and in the Company's most recent
quarterly report on Form 10-Q filed with the SEC.
