Customer care and billing services provider Convergys has reported a net loss of $86m for the third quarter 2009, compared to a net loss of $140m in the year-ago quarter. Revenue increased 13% to $765.4m. Skip related content
Operating loss was $90.3m compared to $242m in the same period last year, while diluted net loss per share was $0.70 compared to net loss per share of $1.15 a year ago. Cash flow from operating activities and free cash flow were $10m and negative $4m, respectively, compared with $26m and $4m in the same period last year.
The company said customer management revenue increased 2% to $492m, information management revenue declined 26% to $99m, and HR management revenue increased to $175m from $59m in the same period last year.
For the nine-month period, Convergys has reported a net loss of $118.9m compared to a net loss of $63.6m a year ago. Revenue increased 3% to $2.14bn.
David Dougherty, president and CEO at Convergys, said: “We made progress during the quarter on multiple fronts to improve the position of the company. Substantial new business signings and continued solid margin performance in Customer Management are positive indicators that our strategy is working, though call volumes continued to be soft in the quarter, as expected. In Information Management, our ground-breaking entry into the utilities market for smart-grid customer information systems represents an exciting future growth opportunity.”
Looking ahead, for the fourth quarter, Convergys expects revenue between $650m and $670m and non-GAAP diluted EPS to be more than $0.30. For fiscal 2009, it expects free cash flow between $165m and $185m.
