National Information Consortium (Nasdaq: EGOV) was down 1 1/16 at 2 7/8 early Friday after the company, which provides e-commerce services to governments, said it is not likely to be profitable before taxes, depreciation and amortization until 2002, a year later than previously expected.
The Overland Park, Kansas-based company said investments in local portals, its partnership with America Online and technology development will result in the delay.
NIC also said it just completed a previously announced restructuring that included cost cuts.
“Our opinion at the time of our restructuring announcement was that targeted cost cuts could allow us to pursue our most promising expansion initiatives,” said president and chief executive officer Jim Dodd. “We were wrong.”