National Information Consortium (Nasdaq: EGOV) plunged 2 7/8 to 4 15/16 Wednesday after the company, which provides e-commerce services to governments, said it will report a third quarter loss because of a planned reorganization to better align recently acquired divisions.
NIC, which is based in Overland Park, Kansas, said it will post a loss for the quarter of 24 to 25 cents per share, before a one-cent charge. The charge — about $1 million before taxes — will cover job cuts and other moves designed to save $1.25 million to $1.75 million a year, before taxes.
“We are displeased with our short-term financial results, and in particular with the performance of our newly acquired companies,” said President and Chief Executive Officer Jim Dodd. “But we remain convinced that our 1999 and 2000 expansion investments were all necessary to secure and broaden NIC’s lead in e-government.”