Nat'l Information sees no operating profit until 2002 Reuters ABN E U u f TECH-NIC-OUTLOOK BUS-ENT-US-RESF-AOL.N-EGOV.O-CPX 10-06 0220 OVERLAND PARK, Kan., Oct 6 (Reuters) - National InformationConsortium (NASDAQ: EGOV), which provides software and services tofederal, state and local governments, said on Friday it wouldlikely not turn an operating profit until 2002. It attributed this outlook to investments in local Webgateways, its partnership with America Online Inc. (NYSE: AOL) andtechnology development in its "eGovernment" businesses. On Sept 20, the company said it would take a $1 millionrestructuring charge, cut its workforce and would report awider-than-expected third quarter loss. It attributed its cash-flow shortfalls in part to marketingefforts to support new contract that would improve revenues andmargins. "Our opinion at the time of our restructuring announcementwas that targeted cost cuts could keep us on a long-standingplan for 2001 positive EBITDA generation," said Jim Dodd, thecompany's chief executive, in a statement. "We were wrong." He said the cost of repositioning its businesses would pushpositive earnings before interest, taxes, depreciation andamortization into 2002. Shares closed at $3-15/16 in Thursday's Nasdaq trading, down$1/16 from the previous session. Shares traded as high as $78 inMarch.Rtr 04:27 10-06-00//Begin Meta Data//Selector Code: reuco-end-
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