To: Kenneth A. Hintz who wrote (12) | 2/12/1998 1:01:00 PM | From: Kenneth A. Hintz | | |
Posted this morning:
TAMPA, Fla., Feb. 12 /PRNewswire/ -- Sykes HealthPlan Services, Inc. ("SHPS"), a joint venture between Sykes Enterprises, Incorporated (Nasdaq: SYKE) and HealthPlan Services Corporation (NYSE: HPS), announces the signing of a definitive agreement to acquire Health International (OTC Bulletin Board: HTHN) ("HI") of Scottsdale, Arizona for $8.00 per share. HI has approximately 2,826,867 outstanding shares. SHPS expects to close the transaction on or before March 31, 1998.
Health International is a disease management company that provides a comprehensive managed medical care program for employers and plan administrators to assist employees and their dependents in improving the quality of their healthcare and reducing unnecessary medical costs. Specifically, HI uses its integrated medical database to precisely target patients with critical diseases who are consuming significant healthcare resources. Once identified, HI develops a uniquely qualified staff of physicians and registered nurses to develop and implement an individualized plan for managing the care of each patient.
SHPS has agreed to purchase all of the common stock of HI for approximately $22,614,936 in cash and will use the purchase method to account for the transaction. As a result, SHPS expects to record a non-cash, non- recurring charge of approximately $8.5 million relating to the acquisition of in-process research and development, and also expects to incur non-recurring charges of approximately $500,000 for planned integration costs associated with this acquisition over the next several quarters. Pursuant to the equity method of accounting, HealthPlan Services Corporation ("HPS") and Sykes Enterprises, Incorporated ("Sykes") will each record 50 percent of the SHPS' charges during their first fiscal quarters ending March 31, 1998.
Through the acquisition of HI, Optimed Medical Systems which closed on December 31, 1997, and other outsourcing contracts SHPS has been awarded, SHPS will have an annualized business backlog of revenue in excess of $30 million and approximately $1.8 million in after-tax earnings. Additionally, SHPS has received an additional equity commitment from the joint venture partners bringing the total equity capitalization of SHPS to $34 million; $17 million each by HPS and Sykes.
"The acquisition of HI will provide a very strategic piece of our operating plan," says David Garner, President of SHPS. "With the additional equity provided by our parent companies and the acquisitions we have quickly made, SHPS is poised to achieve significant growth and provide significant contributions to our parent companies, Sykes and HPS."
Sykes is an information technology company that provides a full complement of outsourcing services to companies worldwide. With more than 6,400 employees, Sykes provides information support services at all stages in the life cycle of their products and services -- from initial development to documentation and training to end-user support. Through recent acquisitions, Sykes also provides diagnostic capabilities and retail software applications and support for back office and point-of-sale customers. Sykes, based in Tampa, now operates nine domestic technical call centers, 11 European centers and 20 branch offices throughout the U.S., Europe, Africa and The Philippines.
HealthPlan Services is a provider of marketing, administration, and risk management services and solutions for benefit programs, serving approximately 125,000 small businesses and large, self-insured organizations. With more than 3,300 employees, HPS' services include distribution, enrollment, billing and collection, claims administration, care management, and information reports and analysis on behalf of health care payors and providers of approximately 2.9 million members in the U.S. HealthPlan Services' clients include managed care organizations, integrated health care delivery systems, insurance companies, self-funded benefit plans, and health care purchasing alliances.
The statements contained in this press release that are not purely historical, including statements regarding Sykes', HPS' and SHPS' objectives, expectations, hopes, intentions, beliefs or strategies regarding the future, are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1934. It is important to note that Sykes', HPS' and SHPS' actual results could differ materially from those in such forward-looking statements, and undue reliance should not be placed on such statements. Among the factors that could cause such actual results to differ materially are: changes in legislation; fluctuations in business conditions and the economy; Sykes', HPS' and SHPS' ability to attract and retain key management personnel; and the risk factors listed from time to time in Sykes', HPS' and SHPS' registration statements and reports as filed with the Securities and Exchange Commission. All forward-looking statements included in this press release are made as of the date hereof, and Sykes, HPS and SHPS undertake no obligation to update any such forward-looking statements. SOURCE Sykes HealthPlan Services, Inc.
(Copyright 1998) |
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To: Kenneth A. Hintz who wrote (18) | 2/24/1998 9:50:00 PM | From: ziad daoudi | | |
CORRECTED-RESEARCH ALERT - Sykes (NASDAQ:SYKE) maintained
Reuters, Tuesday, February 24, 1998 at 20:40
In a Feb. 10 NEW YORK story headlined "Sykes (NASDAQ:SYKE) maintained" in fourth paragraph please read "...Shain..." instead of "...Bendert." A corrected version follows. NEW YORK, Feb 10 (Reuters) - Robert W. Baird & Co said it maintained its buy rating on Sykes Enterprises Inc after Credit Suisse First Boston downgraded Sykes (corrects co name) to hold from buy. -- Sykes was down 4-5/8 to 18-1/4 in afternoon trading, a fall that Baird attributed to the First Boston downgrade. -- Baird analyst Paul Shain (corrects name) said in a research note that there were concerns in the marketplace that a lower effective tax rate due to certain acquisitions meant that Sykes' operating earnings were below expectations. -- But Shain (corrects name) said the sell-off represents a buying opportunity. Baird's near-term target is $30, in line with projected internal growth. Shain expects Sykes to post earnigns of $0.85 per share for 1998 and $1.15 for 1999.
Copyright 1998, Reuters News Service
Companies or Securities discussed in this article: Symbol Name NASDAQ:SYKE Sykes Enterprises Incorporated |
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To: ziad daoudi who wrote (19) | 7/11/1998 10:10:00 PM | From: Steven Luper | | |
Anyone interested in reviving the discussion of Syke? There's a STOCKWINNERS rumor that the stock will beat estimates on its next earnings report. The stock is already beaten down. Seems like it might be a good opportunity. Anyone? |
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To: JGreg who wrote (21) | 1/14/1999 1:15:00 PM | From: Marty | | |
Just read a great review on the company in yesterday's Investor Business Daily and picked up some shares because of it. Noticed that the stock is up 10 points or about 33% since it was downgraded in Feb. '98.
Outsourcing is a great way to save money and it is clearly a trend for the future. (I also have some Fidelity Select Business Services and Outsourcing mutual fund that has done very well.) This has been an overlooked opportunity, which could be a good indicator for future upside. It is clear from the article that they can perform the services a lot better than the client companies.
It is a very similar situation to Solectron (another holding of mine) that expanded from just an assembly source to also provide, R & D, shipping, billing, collection and so on. You can have an idea and, say, a website and SLR will determine how to make your product, manufacture it, sell it, pack and ship it, bill it and collect the bills for you. All you have to do is get the idea and cash your checks. SYKE could provide additional services as well. That kind of expertise usually spreads like water on a blotter. |
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To: Robert Scott who wrote () | 1/25/2000 6:52:00 PM | From: kendall harmon | | |
SYKE, overdone today and looking for a bounce tomorrow <<Tampa, Florida, Jan. 25 (Bloomberg) -- Sykes Enterprises Inc. shares fell 51 percent after the operator of call centers for computer makers and Internet service providers said it would miss analysts' fourth-quarter earnings estimates.
The shares fell 24 1/4 to a 52-week closing low of 23 on the Nasdaq National Market, reducing Sykes' market value by about $1 billion, to $974 million. Tampa, Florida-based Sykes had the biggest percentage decline of any stock in U.S. markets.
Sykes warned that it expects to report fourth-quarter profit of 20 cents to 22 cents a share, less than the 37-cent average forecast of analysts polled by First Call/Thomson Financial. In the year-earlier quarter, it earned 28 cents a share. Sykes also said it expects fourth-quarter revenue of $160 million to $162 million, up from $142 million a year earlier. ``This is very disappointing, there is no doubt about it, and that's why the stock has taken such a hit,' said Stephen Shook, an analyst at Wachovia Securities. ``The stock isn't worth half of what it was. This thing is a little overdone.'
Two other analysts cut their ratings on Sykes today. Shook said he downgraded the stock to ``neutral' from ``strong buy' last week because he thought the shares, which had risen 61 percent in the past year as of yesterday, wouldn't gain more.
Sykes runs 38 call centers that provide technical support for customers of companies such as Microsoft Corp., Apple Computer Inc. and International Business Machines Corp.
Surprised by Shortfall
Sykes blamed foreign-currency transactions, training and development costs for new contracts, and a unit that didn't meet expectations. The earnings shortfall would be the company's first since it sold shares to the public in 1996. ``We're extremely disappointed in the need to recast our numbers for the fourth quarter,' said Sykes Chairman and Chief Executive John H. Sykes in a teleconference. ``We were surprised at the magnitude of this situation."
The company expects to earn 40 cents a share in the first quarter, 10 cents more than the average forecast of seven analysts polled by First Call, as it expects to get about $10 million from delayed contracts, said Chief Financial Officer Scott Bendert. He said Sykes this year expects to earn as much as $1.59, or 8 cents more than the First Call average forecast.
Fourth-quarter revenue was reduced by $4 million because of the euro's fall against the dollar, which made currency conversion more expensive, and another $4 million because of problems at Sykes' SHPS Inc. unit, Shook said. SHPS runs call centers for health-care providers, he said.
Sykes officials didn't provide more information in a statement or answer questions about reasons for the earnings shortfall during its teleconference. Company officials didn't return phone calls seeking comment.
The company has 14,000 workers in the U.S., Canada, Europe, Africa and Central America. Its 1998 revenue was $469.5 million. |
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