Sustained broad based growth drives record fourth quarter revenues; 2008 business outlook reflects continuation of strong demand trends
TAMPA, FL – March 10, 2008 - 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, announced today fourth-quarter and full-year 2007 financial results, the highlights of which are as follows:
(In millions, except per share data)
Fourth Quarter 2007 Fourth Quarter 2006
Revenues $197.7 $158.6
Income from Operations $15.3(a) $10.2
Net Income $9.5(b) $8.1
EPS $0.23(a) (b) $0.20
(a) Includes $1.3 million, $0.03 per diluted share on a pre- and after-tax basis, in provision for regulatory penalties related to two outbound telemarketing contracts in Spain
(b) Includes approximately $1.7 million, $0.04 per diluted share, related to a higher-than-expected effective tax rate
- Fourth quarter 2007 revenues were a record $197.7 million, up 24.6% over the
comparable quarter last year, with growth split 54% and 46% between existing
and new client relationships, respectively; the top-40 clients, which represented
over three-quarters of total revenues, were up 31.2% comparably
- Fourth quarter 2007 operating margin was 7.7% versus 6.4% in the comparable
quarter last year; fourth quarter 2007 operating margin includes a $1.3 million
provision, or 0.7% of revenues, for regulatory penalties
- U.S. capacity utilization rate in the fourth quarter of 2007 increased to 74%,
highest since the first quarter of 2003 and up from 65% in the comparable
quarter, reflecting sustained progress on new customer care program ramp-ups
- Effective tax rate was 10.7% higher, a negative $0.04 per diluted share impact,
than the 28% in the Company’s fourth quarter 2007 business outlook, due to a
combination of a shift in the geographic mix of earnings and certain discrete
adjustments
