Convergys Announces 2008 Guidance and Predicts Record Revenues and Record EPS with Continuing Strong Free Cash Flow
December 06, 2007
Convergys Corporation (NYSE: CVG), the global leader in relationship management, today announced its financial guidance for 2008 and predicted record revenues and record EPS with continuing strong free cash flow.
For 2008, Convergys expects revenues of $2.85 to $3.0 billion and earnings per diluted share of between $1.31 and $1.36. These targets include pre-tax stock-based compensation expense estimated at approximately $25 million.
"The management team is intensely focused on executing our plan to deliver record results,” commented Dave Dougherty, President and Chief Executive Officer of Convergys. “I am encouraged by the increasing size and quality of the Customer Care pipeline and expect revenue growth to accelerate in the coming quarters. We are also taking steps to maintain and improve Customer Care margins even as we face unprecedented currency headwinds. We expect to see strong Information Management operating margins during the large client transition, and meaningful improvement in the results for Employee Care as it progresses toward profitability in 2009. Our leadership position in the markets we serve gives me confidence in our ability to further diversify our revenue streams and expand our client base.”
Within this 2008 guidance, Convergys also expects:
- Customer Care revenues between $2.0 and $2.1 billion with an operating margin of approximately 10 percent.
- Information Management revenues of approximately $625 million with an operating margin in excess of 15 percent.
- Employee Care revenues of approximately $250 million with an operating loss of less than $15 million.
- Cash flow from operations in excess of $250 million and free cash flow in line with net income.
Convergys expects to deliver record revenue and diluted earnings per share of approximately $1.20 in 2007, consistent with the previous guidance contained in our most recent 10-Q filing. This guidance excludes potential additional cost actions in the fourth quarter to further streamline the business.
About Convergys
Convergys Corporation (NYSE: CVG) is a global leader in relationship management. We provide solutions that drive more value from the relationships our clients have with their customers. Convergys turns these everyday interactions into a source of profit and strategic advantage for our clients.
For more than 30 years, our unique combination of domain expertise, operational excellence, and innovative technologies has delivered process improvement and actionable business insight to marquee clients all over the world.
Convergys has approximately 65,000 employees in 68 customer contact centers and other facilities in the United States, Canada, Latin America, Europe, the Middle East, and Asia, and our global headquarters in Cincinnati, Ohio. For more information, visit www.convergys.com
(Convergys and the Convergys logo are registered trademarks of Convergys Corporation.)
Contacts:
Investor Contact:
David Stein, Investor Relations
+1 513 723 7768 or investor@convergys.com
Media Contact:
John Pratt, Corporate Media Relations
+1 513 723 3333 or john.pratt@convergys.com
