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Tier Awarded Virginia Child Support Enforcement Call Center Contract; Contract Valued at up to $27.1 Million
RESTON, Va. --(Business Wire)-- March 2, 2006 -- Tier Technologies, Inc. (Nasdaq:TIERE), announced today that it has been awarded a contract by the Virginia Department of Social Services to operate Virginia's first outsourced child support enforcement Customer Services Call Center. This call center will be designed to help expedite the Department's child support collection process and improve the level of collections in Virginia.
The contract term runs through June 30, 2009 and includes four optional one year renewals. The contract revenues, including the four one year renewal options, are expected to be approximately $27.1 million over the full seven year period. The Customer Services Call Center will be located in Martinsville, Virginia, and is scheduled to open in mid-May. Tier expects to invest $3.1 million in this operation, and hire approximately 77 employees.
"Nearly 25 percent of Virginia's children rely on child support," said Governor Timothy M. Kaine. "More than $560 million is collected per year on behalf of Virginia families. This new customer service center will help us assist more families by improving the level of collections and bringing jobs to a community with the second highest unemployment rate in Virginia."
"We are pleased that the contract with Tier will improve services to Virginia's child support clients," said Nick Young, Director of the Virginia Department of Social Services' Division of Child Support Enforcement. "We expect the center will receive and respond to more than 1.4 million calls each year to assist families with child support questions."
"Tier is honored to be selected for this important project, and is committed to supporting the Commonwealth of Virginia in advancing its child support mission," said James R. Weaver, Chairman and Chief Executive Officer of Tier. "With 80 contracts in the Commonwealth, Tier is a trusted partner for many Virginia communities and agencies, and we are excited about the prospect of continuing to serve our fellow Virginians."
"Tier shares Virginia's spirit of innovation," Weaver continued. "We look forward to delivering our proven, state-of-the-art interactive voice response system, and our highly efficient customer relationship management system, TierTrac(SM) to provide a comprehensive customer service operation for Virginia's child support program."
Tier is a leader in providing state and local government customer contact center products and services that enable agencies to save time and money by improving customer service, automating routine transactions and streamlining workflow processes. Tier is also nationally recognized for the delivery of child support payment processing and services, processing $4.0 billion in child support payments annually.
About Tier
Tier Technologies (Nasdaq:TIERE) offers a diversified array of innovative business and financial transaction processing solutions. Headquartered in Reston, Virginia, Tier's clients include more than 2,200 federal, state, and local governments, educational institutions, utilities and commercial clients in the U.S. and abroad. Tier provides information technology solutions, and through its Official Payments Corp. subsidiary, delivers payment processing solutions for a wide range of markets. From designing, installing and maintaining cutting-edge public sector software systems, to delivering fast, secure and convenient financial transaction processing solutions, Tier provides integrated information solutions that solve problems while balancing innovation with practicality. For more information, see www.tier.com.
Statements made in this press release that are not historical facts, including statements regarding expectations for future revenues and investments, are forward-looking statements that are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Tier undertakes no obligation to update any such forward-looking statements.
Each of these statements is made as of the date hereof based only on current information and expectations that are inherently subject to change and involve a number of risks and uncertainties. Actual events or results may differ materially from those projected in any of such statements due to various factors, including but not limited to the potential loss of funding by clients, including due to government budget shortfalls or revisions to mandated statutes.
For a discussion of these and other factors which may cause our actual events or results to differ from those projected, please refer to Tier's annual report on Form 10-K for the year ended Sept. 30, 2004, Tier's most recent quarterly report on Form 10-Q for the quarter ended June 30, 2005, as well as other filings with the SEC.
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