Sykes Enterprises, Incorporated Provides Business Update On Third Quarter 2010
TAMPA, Fla., Oct. 25, 2010 (GLOBE NEWSWIRE) -- Sykes Enterprises, Incorporated ("SYKES" or the "Company") (Nasdaq:SYKE), a global leader in providing outsourced customer contact management solutions and services in the business process outsourcing (BPO) arena, expects third quarter 2010 preliminary revenues in the range of $304.0 million to $306.0 million compared with the range of $296 million to $301 million provided in the Company's third quarter 2010 business outlook on August 2, 2010. The stronger-than-expected revenues are split roughly evenly between an uptick in demand across a broad cross-section of clients, most notably within the Americas region, and the favorable impact of foreign exchange rate translation, most notably a stronger Euro.
Accordingly, the Company expects preliminary earnings per share in the range of $0.25 to $0.27 for the third quarter compared with $0.18 to $0.22 provided under its previous business outlook. On an adjusted basis, the Company expects preliminary earnings per share in the range of $0.41 to $0.43 compared with $0.24 to $0.26. In addition to the higher than expected revenues, the stronger-than-expected earnings per share is partially due to a tax benefit, the contribution from which is between $0.01 and $0.03, while on an adjusted basis between $0.04 and $0.06.
|Third Quarter 2010||Third Quarter 2010|
|Adjusted Diluted Earnings Per Share||$0.24 -- $0.26||$0.41 -- $0.43|
|Severance & Consulting Engagement Costs||$0.00||($0.04) -- ($0.03)***|
|Merger and Integration Costs, including Impairment||($0.01) -- $0.00||($0.04)**|
|Depreciation & Amortization of Property & Equipment and Intangibles Write-Ups||($0.05) -- ($0.04)||($0.04) -- ($0.03)|
|Earnings (loss) Per Share||$0.18 -- $0.22||$0.25 -- $0.27|
|*Reflects the impact of tax benefits.|
|**The closure of customer contact management centers and the attendant impairments of long-lived assets, primarily leasehold improvements are reflected on an after-tax basis in the above table under "Merger and Integration Costs, including Impairment."|
|***Costs related to the consolidation of leased space, primarily consisting of rent obligations to be paid through the remainder of the lease terms, are similarly reflected on an after-tax basis in the above table under "Severance & Consulting Engagement Costs."|
No conference call will be held in conjunction with this business update. Additional commentary pertaining to the third quarter will be available when SYKES reports its third quarter financial results on November 1 st, 2010.Conference Call for Upcoming Third Quarter 2010 Results The Company will conduct a conference call regarding its third quarter 2010 results and fourth-quarter 2010 business outlook on November 2 nd, 2010 at 10:00 a.m. Eastern Time. The conference call will be carried live on the Internet. Instructions for listening to the call over the Internet are available on the Investors page of SYKES' website at www.sykes.com . A replay will be available at this location for two weeks. This press release is also posted on the SYKES website at http://investor.sykes.com/phoenix.zhtml?c=119541&p=irol-news&nyo=0. Non-GAAP Financial Measure Adjusted earnings per diluted share is an important indicator of performance as this non-GAAP financial measure assists readers in further understanding the Company's results of operations and trends from period-to-period exclusive of certain acquisition-related items. Adjusted earnings per diluted share, however, is a supplemental measure of performance that is not required by, or presented in accordance with, U.S. Generally Accepted Accounting Principles (GAAP).
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