on the move

2010
Innovation
Letter to
Stockholders
Mobile
Highlights
Online
Services
Renewals
& Rebids
Awards
& Honors
By the Numbers
Corporate
Information
www
$
egov.com
NASDAQ: EGOV
N
NIC Partners
877.234.EGOV
on the move
2 0 1 0
a n n u a l
r e p o r t
PEOPLE ARE ON THE MOVE,
ON THE GO, AND GOING MOBILE.
IN 2010 NIC WAS ON THE ROAD,
ON TARGET, ON TOP OF OUR
GAME, AND ON PURPOSE.
MOST IMPORTANTLY WE ARE
ONLINE — PROVIDING INNOVATION
AND TAKING eGOVERNMENT
TO NEW HEIGHTS.
LETTER TO
Stockholders
Dear fellow stockholders, WHEREVER THE FUTURE
Doesn’t it seem like more than
ever,
is
LEADS,
NICeveryone
IS GRATEFUL
on the go? Life keeps moving at a faster
FOR GOVERNMENT PARTNERS
pace, and technology is advancing even
THAT PLACE
THEIR CONFIDENCE
more quickly. When NIC started
in 1992,
the concept of bringing information
fromeGOVERNMENT
IN US TO BRING
vast government repositories into the
TO MILLIONS OF AMERICANS.
workplace or home via a computer
network was considered visionary.
Today the days of the blinking green cursor seem like the dark ages, as we now have
information in our hands anywhere we go. Computers that once filled rooms are now
condensed into a rectangle the size of a notebook or deck of cards — computer,
telephone, music player, camcorder, calendar, newspaper, rolodex, and more, all
combined into a single device.
Harry
Herington
CEO &
CHAIRMAN
OF THE
BOARD
Just as society is on the go, NIC is on the move as well. We are delivering new
services, integrating new partners, launching applications on new technology platforms,
sharing the story of self-funded eGovernment with new administrations, and fostering
innovation by changing the way online government services are delivered and used.
Our momentum in 2010 produced strong financial results and is propelling NIC to
even greater success in 2011 and beyond.
Just like today’s new devices, NIC is a single source delivering more services and
efficiencies to our partners. Today we are an online payment processor, mobile
application developer, cloud computing provider, cyber security expert, research
& development innovator, project manager, customer service agent, and more, all
combined into the nation’s leading eGovernment service provider. As technology evolves,
so does NIC’s vision as we expand both the services we provide and the partners
we provide those services to — all in an effort to keep online government services
surpassing businesses’ and citizens’ expectations.
3
While many of our services help make government more convenient and transparent
for citizens, our roots are in helping businesses access information from government.
Think of all the interactions between a company and government — forms to file
when a business is started, employees hired, licenses renewed, taxes paid, and more.
You’ve heard of B2C (business-to-consumer) companies and B2B (business-to-business)
companies. Part of NIC’s focus is being a B2G company — a business-to-government
company that partners with government to provide efficiencies for businesses through
convenient online services. This forms a well rounded strategy of making government
accessible — whether to a business or a citizen.
More than ever, now is the time for government to turn to NIC. Our expertise is in
demand as we provide the innovation and insights to help government deliver its
services using the latest technology. Whatever technological advances come our way,
NIC will be leading government to make sure new technology is utilized to its fullest
capacity to bring simplicity, speed, sustainability, and service to eGovernment. NIC will
always be on the move, and out in front.
On Target
Financial Highlights
Four years ago we set out to double the size of our company as part of our long-term
strategic plan. In 2010 we achieved that goal with total revenues of $161.5 million, up
22 percent from 2009, and more than twice our total revenues of $71.4 million in 2006.
Also in 2010, operating income increased 34 percent to $29.4 million over the previous
year, and up from $16.1 million in 2006.
The core of our financial performance stems from strong, organic, same-state revenue
growth. In 2010, same-state non-DMV, transaction-based revenues increased a healthy
22 percent. Because of our unique business model, the budget concerns of our
state partners did not curb the amount of convenient, transaction-based services we
launched. In many cases, those budget concerns were the impetus for governments to
create more efficiency and deploy more services online. Under our unique self-funded
business model we worked with our state partners to develop hundreds of new online
services without using tax dollars, ranging from secure mobile property tax payments
in Arkansas to reducing office wait times with the new Driver’s License Appointment
Scheduler service in Utah. In fact, through the end of 2010, NIC has now placed more
than 7,500 applications online for more than 3,000 federal, state, and local agencies.
4
In 2010, same-state non-DMV transaction-based revenues
increased a healthy 22 percent.
Our consistently strong financial performance and free cash flow, along with our
debt-free business, allowed NIC the flexibility to pay two special cash dividends in
2010. NIC paid stockholders a total of $0.55 per share, with the first dividend of
$0.30 per share paid in February 2010, and the second of $0.25 per share paid in
December 2010. We are pleased we could pay these special cash dividends and return
capital to stockholders. This is the fourth consecutive year we have paid dividends,
and a total of $1.85 per share, or more than $117 million, has been returned to
stockholders in the form of special cash dividends during this time.
Over the past four years, more than $117 million
has been returned to stockholders in the form of
special cash dividends.
6
On THE MOVE
Sharing the Story of NIC
In 2010, NIC’s self-funded eGovernment business model was on the move — with
momentum spreading nationwide.
Several states are taking notice of our business model, as we are currently experiencing
one of the healthiest sales pipelines in the history of our company. The 2010 mid-term
elections resulted in NIC being able to share the story of self-funded eGovernment
with many new governors and administrations. From coast-to-coast we are discussing
how government can create enterprise-wide efficiencies, communicate with constituents
using the latest technology, securely process payments, protect sensitive data, and
avoid IT buildout costs — all by turning to NIC for their eGovernment needs.
We invested in our sales team in 2010 as we brought Ron Thornburgh on board as
NIC’s Senior Vice President of Business Development. This is a new position created
to capitalize on our momentum in the eGovernment marketplace and find additional
opportunities for growth. Prior to joining NIC, Ron served for 16 years as the Kansas
Secretary of State. He knows government’s goals and concerns, and how NIC is
the right solution to make online government services convenient and efficient. His
leadership in eGovernment has been recognized nationally by many organizations,
including the Massachusetts Institute of Technology, which presented Ron with
the Digital Government “Agent of Change” award after he led Kansas to national
prominence in electronic delivery service.
On SOLID GROUND
Partner Commitment
NIC’s employees commit every day to delivering the best ideas, applications, service,
and leadership to our current partners. Today we are proud to have 23 states and two
federal agencies as partners, and for the nineteenth consecutive year, NIC successfully
renewed all contracts eligible for renewal and was awarded new contracts in states where
it was time for competitive rebids. We don’t take our unblemished retention rate lightly.
Our partners’ confidence in our services is paramount. In total, 12 state partners
reaffirmed their partnership with us. We serve at the pleasure of our partners, and
sincerely appreciate and thank all of the following states for the opportunity to continue
to partner with them: Alabama, Arkansas, Arizona, Colorado, Indiana, Montana,
Nebraska, New Mexico, Oklahoma, Rhode Island, Tennessee, and West Virginia.
7
On THE ROAD
Federal Pre-Employment Screening Program
The momentum of self-funded eGovernment continues to grow beyond state
governments to the federal government. In 2010 we launched our first self-funded
federal service with the U.S. Department of Transportation, Federal Motor Carrier
Safety Administration. This service, the Pre-Employment Screening Program, gives
driver applicants, as well as motor carriers looking to hire, the ability to purchase
individual driver safety records containing the past five years of crash data and three
years of roadside inspection data. By the end of the year, more than 3,500 motor
carriers and third party information providers had enrolled in the service, with more
than 190,000 records pulled, generating approximately $2 million in revenues in 2010.
We are pleased to see the growth of the Pre-Employment Screening Program continue
to accelerate, and are encouraged by the strong financial results we saw during the
early stages of this new partnership in 2010.
On THE GO
Mobile
According to 2010 data from the Pew Research Center’s Internet & American Life
Project, 55 percent of American adults connect to the Internet wirelessly, either through
a WiFi connection via a laptop or through a handheld device such as a smart phone.
NIC’s online application development strategy continues to extend beyond a
traditional desktop computer or laptop. In 2010 we worked with partners to deliver
more services via smart phones and other mobile devices.
Today NIC has worked with partners to launch more than 35 mobile applications across
several platforms — Android, Blackberry, iPhone and iPad, Microsoft, and Palm. These
smart phone applications help citizens find licensed professionals, practice for a driver’s
exam, encourage students to learn state history, and be alerted about information on
the nation’s most wanted criminals.
In 2010, we kept government at the forefront of mobile technology as we worked with
partners to launch several firsts:

Simultaneously with the debut of the iPad, we helped our partners in
Kentucky, Montana, Nebraska, Tennessee, Utah, and West Virginia
8
NIC has worked with partners to launch
more than 35 mobile applications across
several platforms — Android, Blackberry, iPhone
and iPad, Microsoft, and Palm.
launch the first government application for the device — an
interactive practice driver’s license test that allows young people
to prepare for the written driver’s exam.
Arkansas became the first state government to introduce secure
mobile payments for government services.
On the day the Microsoft Windows Phone 7 debuted in the fall of
2010, our ”FBI’s Most Wanted” application was the first federal
government application made available for the new device.
Mobile technology continues to expand the accessibility of government information as
another delivery channel for eGovernment services. As new channels for online access
unfold, NIC is there working with partners to bring businesses and citizens quick access
to online services.
Mobile technology continues to expand the
accessibility of government information as
another delivery channel for eGovernment services. As new
channels for online access unfold, NIC is there working
with partners to bring businesses and citizens
quick access to online services.
10
On TOP OF OUR GAME
Honors and Awards
While awards are not the primary means by which NIC measures success, we are proud
of the recognition our services and commitment to innovation garnered in 2010.
Each year the “Oscars” of eGovernment are the Center for Digital Government’s
Best of the Web Awards. Congratulations to NIC’s portals and partners in Arkansas,
Alabama, Maine, and Kentucky, who were recognized as four of the top five state
portals in the country. NIC has a proven track record of delivering the very best
eGovernment services in the nation. Our portals have won 80 percent of the Best of
the Web Awards over the past five years. Every day, we strive to provide businesses
and citizens with the very best eGovernment services and we are proud of our
partners’ recognition.
Individual applications were also honored by the Center for Digital
Government through its Digital Government Achievement Awards.
From Hawaii’s eBench Warrant service to Montana’s Roadside Citations,
online applications developed by NIC swept the state government
category for government-to-citizen applications.
NIC’s financial performance was recognized for the second consecutive
year by Forbes magazine as we were again named one of the “Best 100
Small Companies in America.” This list includes the top 100 publicly
traded companies with revenues less than $1 billion dollars, which
have demonstrated strong earnings growth, sales growth, and return
on equity during the past year, and over the past five years. As the only company
in Kansas to achieve this ranking, we are honored to be among this group. This
recognition supports what we have set out to achieve from the beginning — delivering
the very best eGovernment services in a way that builds a financially strong company.
11
On PURPOSE
NIC Values and Community Involvement
We are committed to making our communities the best places to live and work. We
do this through our eGovernment services and expertise, by providing efficiencies
that allow government transactions to take place online, not in line, with the click of a
mouse or the touch of an icon.
NIC also helps build great communities through a company culture that embraces
employee wellness. We believe healthier employees are better employees. Almost
every week across the NIC family of portals there is a health initiative in progress
somewhere. From triathlons to charity runs, our employees engage in a wide range of
wellness activities. Throughout the year we also sponsor a series of
company-wide fitness competitions to help encourage employees
and their families to stay active and maintain a healthy lifestyle.
Building healthy communities takes many forms at NIC. Our
employees participate in blood drives, student mentoring programs,
and holiday family adoption programs. It is also common for
company meetings to involve a community activity. In 2010 at our
annual tech conference for our IT employees, we planted trees in
Indianapolis as part of a city beautification project. We recognized
employee volunteerism with the launch of our new “Citizen of the
Year” award. And, we asked employees to pool their talents and
time as part of our first “Team of the Year” award. These are our
highest employee honors — we truly aspire to do all we can for our
communities and we celebrate those employees who embrace this
core part of our culture.
ONWARD
NIC’s Long-Term Growth
In 2010, NIC was truly on the move. The momentum of self-funded eGovernment
continues in 2011 as we build upon our company’s growth in 2010. Our strategy remains
to drive growth by launching new services and adding new partners. As we look to the
future, we will continue to share the self-funded eGovernment story with states that are
not currently NIC partners. And, we are in the early stages of targeting more federal
self-funded opportunities.
12
Our strategy remains to drivE growth by launching
new services and adding new partners.
Wherever the future leads, NIC is grateful for government partners who place their
confidence in us to bring eGovernment to millions of Americans. From the honors our
partners receive to the efforts we contribute to our communities, our employees are
passionate about using technology to make a difference. We thank each and every
one of them for their continued service and dedication.
And thank you for your investment in our company. We look forward to another strong year.
Sincerely,
Harry Herington
NIC Chief Executive Officer
and Chairman of the Board
13
MOBILE
Highlights
ONE IN A MILLION
Mobile
Mobile application development reached new heights in 2010 as NIC continues to
expand access to eGovernment services through smart phone devices. Today several
of our portals have mobile sites, and even more are mobile-optimized to deliver
streamlined information and specific services on mobile devices.
In 2010 when Arkansas became the first state to introduce secure mobile payments
for government services, it marked a milestone for NIC. We now can offer a seamless
mobile experience for users, from the time they first “hit” a website through the
transaction process to secure payment.
For millions of younger citizens, mobile is the primary way they will experience
eGovernment. With this in mind, when the iPad debuted this year, NIC was the first
to launch a government application specifically for this device. Targeting the younger
generation of citizens, NIC worked with six states to simultaneously launch the Practice
Driver’s Test iPad app. This interactive application helps teens practice for the written
driver’s license exam.
As we launched iPhone and iPad apps, we also made sure our
mobile apps were available across several platforms. As the new
Windows Phone 7 hit the market, NIC made its popular “FBI’s Most Wanted”
application available for this new device. As with the iPhone, the “Most Wanted”
app quickly caught the attention of Windows Phone 7 users. Microsoft named the
app its “Federal Government App of the Week.” That success was soon followed by
two NIC apps winning top spots in Microsoft’s Federal App Contest. “Most Wanted”
placed in the contest’s Top 10, with NIC’s Recovery.gov mobile app finishing as one
of the Top 3 winners.
By the end of the year we hit a million! NIC mobile applications have
been downloaded more than one million times. We are encouraged by this rapidly
developing delivery channel for eGovernment services, as it is bringing a new
generation of citizens convenient access to government services.
14
ONLINE SERVICES
Highlights
MAKING A DIFFERENCE
YOUniversal and Gambling Intercept
Each day we work closely with our partners to launch new services. These services
make interaction with government simpler, quicker, and more convenient. Some of the
services have lasting effects on the lives of citizens. Here are two examples of services
we can say are truly making a difference.
There was a time when Arkansas’ scholarship process meant a
lot of paper, a lot of time, and a lot of unused scholarship funds.
Thanks to an online service launched in 2010, that has all changed. Today Arkansas’
scholarship process is viewed as a “best practice” in administering higher education
financial aid. This interactive service, called YOUniversal, allows students to apply for
multiple scholarships, grants, and financial aid programs through a single, consolidated
website. Parents and students answer a few questions, such as grade point average and
family income level, in order to view scholarships for which the students are eligible.
The system also eliminates the manual paper application process and helps create
efficiencies by compiling automatic updates of student information once a scholarship
is awarded. The state expects an 80 percent reduction in paper and mailing costs.
Meanwhile the total number of scholarships awarded reached 125,000 in 2010, up
from 15,000 in 2009, with 12 percent accessing the service through a mobile device.
Another application making a difference in children’s lives was
deployed by NIC’s Colorado and Indiana portals. Colorado’s Division of
Child Support Enforcement and Indiana’s Department of Child Services successfully
collect unpaid child support through a Gambling Intercept application. The online
service ensures that before any gambling winnings are paid, a database is checked for
individuals who are delinquent on child support payments. If child support payments
are found to be delinquent, the winnings are intercepted and applied to the child
support in arrears.
Whether it is scholarship money for Arkansas’ students or child support payments for
Indiana and Colorado children, these two services are making a difference in children’s
lives and we are proud to have developed them with our partners.
15
RENEWALS &
Rebids 2010
The state of West Virginia signed a new contract with West Virginia
Interactive to manage its eGovernment services for up to three years.
The state of Colorado signed a four-year contract extension with
Colorado Interactive.
The state of Rhode Island approved an extension of Rhode Island
Interactive’s portal management contract through 2012.
The state of Arkansas renewed its contract with Arkansas Information
Consortium for one year.
The state of Tennessee extended NICUSA, Tennessee Division’s portal
management contract through 2011.
The New Mexico Motor Vehicle Division renewed New Mexico Interactive’s
engagement through 2013.
 The state of Indiana extended its contract with Indiana Interactive through 2014.
Montana Interactive was awarded a new portal management contract by the
state of Montana for services through 2020.
The state of Oklahoma signed the first of five single-year renewals with
Oklahoma Interactive.
The state of Alabama extended Alabama Interactive’s portal management
contract through 2012.
The state of Arizona renewed its contract with the NICUSA, Arizona Division
for one year.
Nebraska Interactive was awarded a contract extension by the state of
Nebraska, for services through 2016.
16
AWARDS
& Honors
Best of the Web
Government-to-Citizen
#2 – Arkansas
Ada County, Idaho – Sheriff’s Office #3 – Alabama
#4 – Maine
Colorado Tax Tracks
#5 – Kentucky
Utah Driver License
Top Ten Finalist – Rhode Island
Top Ten Finalist – Tennessee
Montana Secretary of State
Top Ten Finalist – Texas
Top Ten Finalist – Vermont
New Mexico Motor Vehicle
Top Ten Finalist – Virginia
Internet Video Visitation Payments
Division Scheduler
Candidate Filing
Division Website
Tennessee General Assembly Website
West Virginia Vehicle
Digital Government
Achievement Awards
Government-to-Government
Registration System
Honorable Mention –
mobile.arkansas.gov
Hawaii Electronic Bench Warrants
Honorable Mention – Nebraska Maine Recovery Act
Judicial Branch Internet
Payment System
Electronic Reporting
Montana Roadside
Citation ePayments
Honorable Mention – South Carolina Appliance Rebate Program
Government-to-Business
Maine
Digital States Survey
TankSmart Online Oil Storage
Overall
Tank Search and Operator Training
Utah – A grade
Honorable Mention – Arkansas
Virginia – A- grade
Office of State Procurement Colorado – B+ grade
Professional Consulting Services Kentucky – B+ grade
Online Contract & Amendment Tennessee – B+ grade
Submission Service
Honorable Mention – Utah
Public Safety
Professional Licensing Continuing #1 – Tennessee
Education Management
#2 – Utah
#3 – Virginia
Government Internal
Oklahoma State Department of Health Step UP Performance Management System
17
Digital States Survey(continued)
GovMarks Awards
Health & Human Services
Best State & Local Government #1 – Utah
Marketing Campaign – OK.gov’s #4 – Tennessee
“Next Time, Pay Online”
Best Creative Campaign – OK.gov’s Commerce, Labor & Tax
“Go Green Oklahoma” and #1 – Utah
“eRecycle at the State Capitol Event” campaigns
Finance & Administration
#1 – Utah
#5 – Kansas
Energy & Transportation
Center for Digital
Government Best
Fit Integrator Award
#2 – Utah
Alabama.gov Website and
Online Services
Citizen Engagement
Maine KeepMEWell Site
#2 – Virginia
South Carolina Appliance
#4 – Colorado
Rebate Program
Utah Driver License Division
Adaptive Leadership
#5 – Colorado
Connect.Utah.gov Portal
Online Scheduler
IACA Merit Award
NASCIO Recognition Awards
Cross-Boundary Collaboration
& Partnerships
Winner – Arkansas YOUniversal Financial Aid Management System
Enterprise IT Management
Utah.gov UCC Amendments
InformationWeek’s 12 Best
Government Websites
Alabama.gov
Utah.gov
Initiatives
Winner – Utah Cloud Infrastructure
Open Government Initiatives
Sunshine Review’s
Sunny Awards
Finalist – Colorado Online
Indiana – A grade
Maine – A grade
Transparency Initiatives
Finalist – Kentucky Open Door Website
18
Juggle.com Top
Government Website Award
Communicator Awards
Alabama.gov
RI.gov
Arkansas.gov
Utah.gov
Silver Award of Distinction
Colorado.gov
Maine.gov
RI.gov
TN.gov
Utah.gov
Virginia.gov
Web Marketing Association
Government Standard of
Excellence Award
Utah.gov
Outstanding Website Award
Harvard Bright Ideas in
Government
Hawaii Electronic Bench Warrants
Rhode Island Liquor Compliancy
International Academy of
Visual Arts W3 Award
Gold Award – Indiana State Fair Website
Silver Award – Utah Department of Public Safety Mobile Media Portal
U.S. Public Interest
Research Group Openness
in Government Spending
RI.gov
Government Customer
Support Excellence Award
for Technical Excellence
Utah.gov
AAMVA Customer Service
Excellence Award
Utah.gov Public Information Officer Media Portal
Silver Davey Award
Utah.gov Driver License Scheduler
Kentucky – A grade
Webby Awards
Interactive Media Awards
Official Honoree – Utah.gov
Outstanding Government
Achievement – RI.gov
19
OUR eGOVERNMENT
n
Partnerships
Alabama
www.Alabama.gov
Iowa
www.Iowa.gov
Rhode Island
www.RI.gov
Arizona
www.AZ.gov
Iowa County Treasurers
www.IowaTaxandTags.gov
South Carolina
www.SC.gov
Arkansas
www.Arkansas.gov
Kansas
www.Kansas.gov
Tennessee
www.TN.gov
Colorado
www.Colorado.gov
Kentucky
www.Kentucky.gov
Texas
www.Texas.gov
Federal Election
Commission
www.FEC.gov
Maine
www.Maine.gov
U.S. Department of
Transportation
www.psp.fmcsa.dot.gov
Hawaii
www.eHawaii.gov
Idaho
www.Idaho.gov
Indiana
www.IN.gov
Indianapolis &
Marion County, IN
www.IndyGov.biz
20
Montana
www.mt.gov
Oklahoma
www.OK.gov
Nebraska
www.Nebraska.gov
New Mexico MVD
ww.mvd.newmexico.gov
Utah
www.Utah.gov
Vermont
www.Vermont.gov
Virginia
www.Virginia.gov
West Virginia
www.WV.gov
BY THE
Numbers
STRENGTH IN NUMBERS?
We think so.
Here are some of the key metrics of our success in 2010.
$12.1
Total amount of funds securely processed by NIC in 2010
BILLION
$161.5
Total NIC revenue in 2010
MILLION
Per share special cash dividends distributed to $0.55
stockholders in 2010
22%
Year-over-year increase in NIC’s total revenues
23
Number of states that outsource key
eGovernment services to NIC
ONE
Total downloads of NIC smart phone apps
MILLION
7,500
Number of interactive services built and managed by NIC
PORTAL REVENUES (in millions)
$180
$155.2
$160
$128.6
$140
$120
$100
$80
$60
$40
$20
$0
$17.8
2000
$26.4
2001
$34.8
$40.2
2002
2003
$48.5
2004
$57.9
2005
$70.0
2006
$82.5
2007
$96.8
2008
2009
2010
21
CORPORATE
Information
Board of Directors
Harry H. Herington
Chairman of the Board and
Chief Executive Officer
Mr. Herington, 51, is the Chief Executive
Officer of NIC and previously served
as the Company’s President, Chief
Operating Officer, and Executive Vice
President of Portal Operations. He
became an NIC Director in 2006.
Alexander C. Kemper
Mr. Kemper, 45, is Chairman of The
Collectors Fund, a private equity fund,
and Chairman and Chief Executive
Officer of Pollenware, a trade settlement
company. He is a Director of UMB
Financial Corp., and several privately-held
companies. He became an NIC Director
in 2007.
Art N. Burtscher
Lead Independent Director
Mr. Burtscher, 60, is Senior Vice
President of the Westwood Trust. He
is also a Director of NovaStar Financial,
and several privately-held companies.
Mr. Burtscher became an NIC Director
in 2004 and was named Lead Director
in 2008.
William M. Lyons
Mr. Lyons, 55, is the former president
and CEO of American Century
Companies, Inc., a Kansas City-based
investment manager. Mr. Lyons is also
a Director of Morningstar, Inc. and the
NASDAQ Stock Exchange. He became
an NIC Director in 2009.
Daniel J. Evans
Governor Evans, 85, is Chairman of
Daniel J. Evans Associates, a public policy
consulting firm, and previously served
as Governor and U.S. Senator for the
state of Washington. He is also a Director
of Costco Wholesale Corporation and
Archimedes Technology Group. He
became an NIC Director in 1998.
Ross C. Hartley
Mr. Hartley, 63, is a co-founder of NIC
and former President of The Hartley
Insurance Group. He is also a Director of
the Empire District Electric Company. He
became an NIC director in 1998.
22
Pete Wilson
Governor Wilson, 77, is a Principal at
Bingham Consulting Group, a business
consulting firm. He previously served as
Governor and U.S. Senator for the state
of California and Mayor of San Diego.
He is also a Director of Irvine Corporation,
U.S. Telepacific Corporation, and U.S.
HealthWorks. Governor Wilson became
an NIC Director in 1999.
Committee Memberships
EXECUTIVE Officers
Audit Committee
Art N. Burtscher — Chair
Daniel J. Evans
Alexander C. Kemper
William M. Lyons
Pete Wilson
Harry H. Herington
Chairman of the Board and
Chief Executive Officer
Age 51
Compensation Committee
Alexander C. Kemper — Chair
Art N. Burtscher
Daniel J. Evans
William M. Lyons
Pete Wilson
Corporate Governance &
Nominating Committee
William M. Lyons — Chair
Art N. Burtscher
Daniel J. Evans
Alexander C. Kemper
Pete Wilson
Contacting THE
Board of Directors
Communications to NIC’s Board of
Directors should be sent via e-mail to
board@egov.com or in writing to:
Board of Directors
NIC Inc.
25501 West Valley Parkway
Suite 300
Olathe, Kansas 66061
The Board’s committee charters, the
Company’s Code of Business Conduct
and Ethics, and governance guidelines
may be found on the Company’s
website at www.egov.com/Investors/
CorporateGov and may be obtained in
print by contacting the Investor Relations
Department at invest@egov.com or
(913) 498-EGOV.
William F. Bradley, Jr.
Chief Operating Officer and
General Counsel
Age 56
Stephen M. Kovzan
Chief Financial Officer
Age 42
Robert W. Knapp
Executive Vice President
Age 42
OTHER Officers
Aimi M. Daughtery
Chief Accounting Officer
Age 40
Independent Registered
Public Accountants
PricewaterhouseCoopers LLP
1100 Walnut Street
Suite 1300
Kansas City, Missouri 64106
(816) 472-7921
www.PwC.com
Outside Counsel
Stinson Morrison Hecker LLP
1201 Walnut Street
Suite 2900
Kansas City, Missouri 64106
(816) 842-8600
www.stinson.com
23
Stockholder Information
Investor Relations
Annual Meeting
The Annual Meeting of NIC Inc.
stockholders will be held on May 3, 2011
at the Sheraton Overland Park Hotel at
the Convention Center, 6100 College
Boulevard, Overland Park, Kansas, 66211.
Copies of NIC’s Annual Report on Form
10-K, Quarterly Reports on Form 10-Q,
and other publications are available
free of charge upon request. Inquiries
should be directed to:
A formal notice, together with the
proxy statement and proxy form (along
with the 2010 Form 10-K), will be
mailed in advance of the meeting to
all stockholders of record entitled to
vote. Stockholders are encouraged to
attend the meeting, but those unable
to do so are asked to sign and return
the proxy form.
Stock Listing
NIC Inc.’s common stock is traded on
NASDAQ Global Select market under
the symbol “EGOV.” As of March 7, 2011
there were 64,873,675 shares outstanding
and eligible to vote at the meeting.
Register and Transfer Agent
Computershare
250 Royall Street
Canton, MA 02021
(781) 575-2000
www.computershare.com
Angela Skinner
Director of Corporate Communications
& Investor Relations
25501 West Valley Parkway
Suite 300
Olathe, Kansas 66061
(913) 754-7054
(877) 234-EGOV
askinner@egov.com
Important information is included in
the most recent Form 10-K, which is
attached to this annual report. These
documents can also be viewed online
at www.egov.com/Investors.
Credits
Design
Grapevine Designs
Lenexa, Kansas
www.grapevinedesigns.com
Printing
DG3-Diversified Global Graphics Group
www.dg3.com
Trademarks & Registered Service Marks
NIC Inc. is a registered service mark of NIC Inc. The NIC logo and “The People
Behind eGovernment” are registered trademarks of NIC Inc. Certain other
names and logos protected by trademark appear in this report. Rather than
list the names and entities that own these trademarks or insert a trademark
symbol with each mention of the trademark, NIC Inc. states that it is using the
names only for informational purposes and to the benefit of the trademark
owner with no intention of infringing upon that trademark.
© 2011 NIC Inc. NIC is an equal opportunity employer. Printed in the U.S.A.
24
WHEREVER THE FUTURE
LEADS, NIC IS GRATEFUL
FOR GOVERNMENT PARTNERS
THAT PLACE THEIR CONFIDENCE
IN US TO BRING eGOVERNMENT
TO MILLIONS OF AMERICANS.
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25501 W. Valley Parkway, Suite 300 • Olathe, Kansas 66061
p: 877.234.EGOV • f: 913.498.3472 • www.egov.com
NIC Inc.