REUTERS) Sykes Q4 net rises, restates Q2 and Q3 results
Sykes Q4 net rises, restates Q2 and Q3 results
TAMPA, Fla., Feb 7 (Reuters) - Sykes Enterprises Inc.,
which provides technology services to business, Monday posted
lower-than-expected 1999 fourth-quarter profits and forecast
disappointing earnings for 2000.
The company also announced revised results for the 1999
second and third quarters that were down sharply from the
original figures.
Shares of Sykes <SYKE.O> were off 3-5/8 at 14-5/16 at
midday on the Nasdaq stock market.
Fourth-quarter net income was $7.4 million, or 17 cents per
diluted share, excluding charges, the company said. Wall Street
had expected 21 cents per share, according to First
Call/Thomson Financial.
In the 1998 fourth quarter Sykes earned $11.9 million, or
28 cents per diluted share, excluding charges.
Fourth-quarter revenues rose to $163.6 million from $142.4
million a year earlier.
In the quarter, Sykes had special charge that included a
one-time, acquisition-related charge of $1.4 million, as well
as an additional charge of $7.3 million. The company also had a
fourth quarter severance charge of $500,000, as well as a $6.0
million charge.
The company did not immediately return calls to clarify
what these charges were related to.
Chairman and Chief Executive John Sykes said the company
would be looking for "strategic alternatives" for its wholly
owned subsidiary SHPS Inc.
The Tampa, Fla.-based company said the restatement of its
second and third quarter results stemmed from delayed revenues
in connection with certain software and service contracts.
In light of the restatement, the company now expects 2000
earnings at about $1.10 per share on revenues of about $735
million. Analysts were expecting earnings of $1.53 per share,
according to First Call.
Second quarter net income was restated as $4.0 million, or
9 cents per diluted share, from $11.5 million, or 27 cents a
share. Revenues were restated to $134.1 million from $146.1
million.
Third quarter net income was restated as $4.3 million, or
10 cents per diluted share, from $14.1 million, or 33 cents per
share. Revenues were revised to $141.0 million from $161.0
million.
((--New York Technology Desk 212/859.1860))
REUTERS
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