Unaudited Quarterly Operating Results

12 Months Ended

Dec. 31, 2012

Unaudited Quarterly Operating Results

12. UNAUDITED QUARTERLY OPERATING RESULTS

The unaudited quarterly information below is subject to seasonal fluctuations resulting in lower portal revenues in the fourth quarter of each calendar year (on an individual portal basis, and excluding revenues from new outsourced government portal contracts awarded or acquired during the year), due to the lower number of business days in the quarter and a lower volume of business-to-government and citizen-to-government transactions during the holiday periods.

2012
	Three Months Ended										Year Ended
	March 31, 2012			June 30, 2012		September 30, 2012		December 31, 2012			December 31, 2012
Revenues:
Portal revenues	$	45,711,804		$	49,042,468	$	50,197,700	$	54,433,040		$	199,385,012
Software & services revenues		3,031,317			2,939,332		3,008,474		2,778,391			11,757,514
Total revenues		48,743,121			51,981,800		53,206,174		57,211,431			211,142,526
Operating expenses:
Cost of portal revenues, exclusive of
depreciation & amortization		28,750,896			30,549,948		31,794,232		33,443,979			124,539,055
Cost of software & services revenues,
exclusive of depreciation &
amortization		957,423			1,008,078		1,079,460		996,262			4,041,223
Selling & administrative		7,935,303			8,382,643		8,218,715		8,315,285			32,851,946
Amortization of acquisition-related
intangible assets		80,769			80,769		52,054		-			213,592
Depreciation & amortization		1,310,568			1,319,701		1,605,553		2,069,118			6,304,940
Total operating expenses		39,034,959			41,341,139		42,750,014		44,824,644			167,950,756
Operating income		9,708,162			10,640,661		10,456,160		12,386,787			43,191,770
Other expense, net		(890	)		-		-		(15,321	)		(16,211	)
Income before income taxes		9,707,272			10,640,661		10,456,160		12,371,466			43,175,559
Income tax provision		4,079,721			4,546,917		4,461,320		3,748,853			16,836,811
Net income	$	5,627,551		$	6,093,744	$	5,994,840	$	8,622,613		$	26,338,748
Basic net income per share	$	0.09		$	0.09	$	0.09	$	0.13		$	0.40
Diluted net income per share	$	0.09		$	0.09	$	0.09	$	0.13		$	0.40
Weighted average shares outstanding:
Basic		64,296,996			64,488,837		64,585,659		64,627,150			64,500,244
Diluted		64,296,996			64,488,837		64,603,817		64,696,246			64,564,664

2011
	Three Months Ended										Year Ended
	March 31, 2011		June 30, 2011		September 30, 2011			December 31, 2011			December 31, 2011
Revenues:
Portal revenues	$	40,355,066	$	43,783,252	$	43,850,010		$	42,288,106		$	170,276,434
Software & services revenues		2,378,412		2,640,677		2,838,915			2,764,733			10,622,737
Total revenues		42,733,478		46,423,929		46,688,925			45,052,839			180,899,171
Operating expenses:
Cost of portal revenues, exclusive of
depreciation & amortization		25,420,650		26,362,294		27,122,489			25,824,503			104,729,936
Cost of software & services revenues,
exclusive of depreciation &
amortization		996,969		1,008,960		1,062,767			962,221			4,030,917
Selling & administrative		6,685,990		8,419,671		6,275,587			7,350,510			28,731,758
Amortization of acquisition-related
intangible assets		80,769		80,769		80,769			80,769			323,076
Depreciation & amortization		1,084,423		1,109,318		1,167,347			1,214,324			4,575,412
Total operating expenses		34,268,801		36,981,012		35,708,959			35,432,327			142,391,099
Operating income		8,464,677		9,442,917		10,979,966			9,620,512			38,508,072
Other income (expense), net		3,123		615		(9,727	)		(28,831	)		(34,820	)
Income before income taxes		8,467,800		9,443,532		10,970,239			9,591,681			38,473,252
Income tax provision		3,412,805		3,910,303		4,139,018			4,068,644			15,530,770
Net income	$	5,054,995	$	5,533,229	$	6,831,221		$	5,523,037		$	22,942,482
Basic net income per share	$	0.08	$	0.09	$	0.11		$	0.08		$	0.35
Diluted net income per share	$	0.08	$	0.09	$	0.11		$	0.08		$	0.35
Weighted average shares outstanding:
Basic		63,771,121		63,997,854		64,120,253			64,176,446			64,017,813
Diluted		63,831,274		64,060,660		64,199,973			64,324,735			64,156,669