NIC, Inc. (EGOV)
Q1 2010 Earnings Call
May 3, 2010 5:00 pm ET
Chris Neff – Vice President of Marketing
Harry H. Herington – Chairman of the Board & Chief Executive Officer
Stephen M. Kovzan – Chief Financial Officer
Carter Malloy – Stephens, Inc.
Chad Bennett – Northland Securities
Andrea James – Dougherty & Company
James Cakmak – Sidoti & Company
Edward Antoian – Chartwell Investment Partners
Previous Statements by EGOV
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The press release for NIC’s first quarter 2010 earnings announcement was issued 30 minutes ago. For those of you who haven’t received the release, the announcement is available on our corporate website at www.NICUSA.com. You may also call our headquarters at 877-234-3468 and we will email the information directly to you.
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 the potential for growth in revenue and income and statements regarding continued implementation of NIC’s business model and it’s development of new products and services.
Forward-looking statements are subject to inherent risks and uncertainties in there can be no assurance that such 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 in to its operations recently 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 and 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, the SEC investigation and general economic conditions including the current economic slowdown and the other important cautionary statements and risk factors described in NIC’s 2009 annual report on Form 10K filed with the Securities & Exchange Commission on March 16, 2010.
NIC does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such updates under any circumstances. With that, I’d now like to introduce Harry Herington, Chairman of the Board and CEO of NIC.
Harry H. Herington
We are pleased with NIC’s performance and are excited about several news worth items over the past few months including a seamless transition in Texas which has positioned us extremely well to meet several important milestones in the second quarter; the great start in New Mexico with the motor vehicle services are performing well; two new solutions that we believe will stake our claim as the leader in mobile eGovernment and make our partners’ eGovernment services available on some of the coolest new tech devices and NIC’s first self funded service for the federal government which is in the final system testing.
Starting with our newest federal service, we are very excited about the pre-employment screening system for the US Department of Transportation Federal Motor Carrier Safety Administration or FMCSA for short. This is a ground breaking new service to provide secure online access to driver safety data including crash and inspection information which motor carriers use as part of their decision making process for new drivers. The service is currently in final testing and we will issue an announcement when it officially launches.
This service for FMCSA is NCI’s first self funded engagement in the federal space and we expect it will open doors for other self-funded opportunities in the federal government. It’s been a significant undertaking for our team in DC. I want to thank everyone at NIC and in the industry who has helped us deliver this service. I also want to thank our partners at FMCSA who were willing to be innovative with their funding model and have been great to work with. We look to a long and successful relationship built around this important and effective service.
Moving to Texas, we are extremely pleased with the transition to the new Texas contract. This tremendous transformation in such a short period of time makes our achievement that much more noteworthy. We have started work on several major enhancements including a new enterprise wide payment engine and content management system. These enhancements will be in place this quarter when we unveil the new portal which is something we’re very excited about.
Even while our team has been working tirelessly on these new projects, we’ve also been collaborating with the state on developing new services which will become the primary focus for the portal once these initial deliverables are launched. We have a satisfied partner, a best in class portal and more news to share from Texas on future calls.
In New Mexico we have another successful new engagement. The motor vehicle division initial suite of DMV service are performing quite well and the partner is very pleased with our team’s performance. We have many new services in the pipeline and look forward to further performance improvement in New Mexico.
Let’s move on to discuss innovation or more specifically NIC’s view of innovation. We are driven to expand access to government information and services. This includes offering self funded to new segments of government as we have done with FMCSA as well as introducing services in to new channels and on new devices. A huge eGovernment opportunity that has been gaining momentum is mobile and it will continue to grow as more people own smart phones with web browsers and fast connectivity.