Olathe-based NIC reports smaller profit, higher revenue for quarter

NIC Inc., an Olathe-based website developer for governments, on Thursday reported a smaller profit but higher revenue for the fourth quarter.

Net income was $6.2 million, or 9 cents per share, for the final three months of 2013, down from $8.6 million, or 13 cents per share, in the same period in 2012. Revenue climbed to $60.8 million in the quarter from $56.2 million the previous year.

NIC builds and operates websites that allow people to renew vehicle licenses and carry out other government transactions online.

The company said its latest quarterly results included $2.5 million in legal expenses and other costs associated with defending civil claims brought by the Securities and Exchange Commission against Steve Kovzan, the firm’s chief financial officer. Those costs lowered earnings per share for the fourth quarter by about 2 cents, the company said.

Late last year, a federal jury in Kansas acquitted Kovzan of all charges stemming from a 2011 complaint based on undisclosed perks for the firm’s top officer.

NIC also said its effective tax rate in the quarter increased to 44 percent from 30 percent in the final quarter of 2012.

For the full year, NIC earned $32 million on revenue of $249.3 million, compared with a profit of $26.3 million on revenue of $123.6 million.

“This was an outstanding year of growth for NIC,” Kovzan said in the earnings release.

This story was originally published February 6, 2014 at 5:01 PM with the headline "Olathe-based NIC reports smaller profit, higher revenue for quarter."