NIC Inc. (EGOV)
4Q09 Earnings Call Transcript
February 4, 2010 16:30 ET
Nancy Beaton - Director of Communications and Investor Relations
Harry H. Herington - Chairman and Chief Executive Officer
Stephen M. Kovzan - Chief Financial Officer
Carter Malloy - Stephens Inc.
Ian Kell - Northland Securities, Inc.
James Cakmak - Sidoti & Company, LLC
Jay Zises - Associated Capital, L.P.
Jeffrey Evanson - Dougherty & Co. LLC
Previous Statements by EGOV
» NIC Inc. Q4 2008 Earnings Call Transcript
» NIC Inc. Q3 2008 Earnings Call Transcript
» NIC Inc. Q2 2008 Earnings Call Transcript
I'd now like to turn the conference over to Nancy Beaton, Director of Investor Relations and Communications. Please go ahead, ma'am.
Thank you, (ph) Brandy. The press release for NIC's fourth quarter 2009 earnings announcement was issued 30 minutes ago. For those of you who haven't received the release, the announcement is available on our corporate site at nicusa.com. And you may also call our headquarters at 877-234-3468, and we will e-mail you the information.
Before we begin, let's cover our customary safe harbor statement. Any statements contained in this release that do not relate to historical or current facts constitute forward-looking statements. These statements include NIC's financial guidance for the current fiscal year including statements regarding the potential for growth in revenues and income and statements regarding continued implementation of NIC's business model and its development of new products and services.
Forward-looking statements are subject to inherent risks and uncertainties that there can be no assurance that these statements will prove to be correct. 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, NIC's ability to successfully integrate into its operations reently awarded eGovernment contracts; NIC's ability to successfully increase the adoption and use of eGovernment services; 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 services by businesses and citizens; competition and general economic conditions including the recent deterioration in general economic conditions; and the other important cautionary statements and risk factors described in NIC's 2008 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 13, 2009 and in NIC's quarterly reports on Form 10-Q filed with the SEC in 2009.
I'd now like to introduce Harry Herington, Chairman of the Board and Chief Executive Officer of NIC.
Harry H. Herington
Thank you, Nancy. I want to welcome everyone to NIC’s fourth quarter earnings call. The fourth quarter topped off a transformational year for NIC. 2009 was fuelled by continued organic revenue growth in our existing states; success in securing all renewals and re-bids with our existing partners, and our success in closing significant opportunities with new partners such as Texas including the acquisition and subsequent award of the long term portal management contract; the Motor Vehicle Division, and our first Federal self-funded contract with U.S. Department of Transportation, Federal Motor Carrier Safety Administration.
I expect this strong momentum to carry over into 2010 as we enter the year with a full sell pipeline that we hope will soon manifest in the form of RFPs. But before I get too deep into 2010 let’s spend some time on our key accomplishments in the fourth quarter.
First, we are pleased to announce that our partners in Nebraska and Oklahoma have again awarded us with new contracts after competitive re-bids. The Nebraska contract has an initial term of 4 years, with one two year renewal option that runs through 2016, and the contract with Oklahoma has a one year term with four single year renewal options that extend to 2014.
We continue to work with our partners to expand the number of online cost saving services. They are for businesses and citizens, and we are honored that Nebraska and Oklahoma wanted to extend our longstanding relationship.
In today’s budget-strapped environment, these state partners and frankly all of our state partners should be applauded for deploying a model that brings more services online in a cost effective manner. We (indiscernible) them and thank them for the partnership.
Now moving on to some of our newer partners. As we previously discussed with you on our third quarter earnings call back in November, we are developing a premium (indiscernible) screening system for the U.S. Department of Transportation, Federal Motor Carrier Safety Administration. This service will electronically provide crash and inspection data now at a federal level to motor carriers and drivers in the hiring process to help insure that the safest drivers are on the road.
There has been a lot of interest in this service from both the (indiscernible) and investors. So let me provide you a status update. A key next step that must take place before customers will be able to pull data from the service is an additional regulatory requirement. A System of Records Notice document or known as the SORN must be followed by the agency and must remain open for public comment for 45 days before the application can be launched.
In a nutshell, the SORN is a federal requirement that gives notice that the service will disseminate personal information such as the name of an individual or some other identifier assigned for the individual. NIC has a long history of protecting the public since the data, and is working closely with the Federal Motor Carrier Safety Administration to take every step necessary to ensure our track record remains unblemished.