Sykes' Fourth Quarter Earnings Slip 19.4%

Higher taxes on foreign exchange gains helped drive the company's earnings down in the fourth quarter.
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Sykes Enterprises

(SYKE) - Get Report

reported on March 2, 2009 that Q4 FY08 earnings slipped 19.4%, hurt by higher taxes on foreign exchange gains and a ruling by the German Supreme Court. Net income dropped to $7.63 million or $0.19 per share from $9.47 million or $0.23 per share in Q4 FY07. The latest quarterly earnings missed the consensus estimate of $0.32 per share.

Total revenue rose 1.5% to $200.77 million from $197.71 million, hurt by a $22.90 million loss from a strengthening US dollar. On a constant currency basis, revenue increased 13.1% year-over-year. Revenue from the Americas increased 2.4% to $138.29 million, driven by an increase in customer care demand, which was partially offset by unfavorable foreign currency translations of $12.80 million. Revenue from Europe, the Middle East, and Africa dipped 0.3% to $62.48 million as a $9.90 million increase in customer care demand was offset by $10.10 million related to a weaker Euro relative to the US dollar. Capacity utilization rate rose to 81.00% from 80.00% on a comparable basis on 3,100 new seat additions.

FY08 earnings increased 51.9% to $60.56 million or $1.48 per share from $39.86 million or $0.98 per share in FY07. Revenue surged 15.4% to $819.19 million from $710.12 million.

Sykes Enterprises expects Q1 FY09 EPS of $0.28 to $0.30 on revenue between $203.00 million and $205.00 million. FY09 revenue is expected between $839.00 million and $843.00 million and EPS is expected between $1.26 and $1.32.