Customer care and billing services provider Convergys has reported a net loss of $29.3m for the fourth quarter 2008, compared to net income of $45.3m in the year-ago quarter, on revenue down 1% at $703.7m.
It made an operating loss of $35.6m compared to operating income of $58.5m in the same period last year. Diluted net loss per share was $0.24 compared to diluted EPS of $0.34 a year ago. Cash flow from operating activities was $127.3m.
The company said customer management revenue grew 11% to $526.6m, while information management revenue fell 35% to $113.6m, and HR management revenue fell 1% to $63.5m.
For fiscal 2008, the company reported a net loss of $92.9m compared to net income of $169.5m a year ago, on revenue down 2% at $2.78 billion.
David Dougherty, president and chief executive at Convergys, said: Our strengthened cash balance combined with expected 2009 free cash flow is sufficient to invest in the business and pay off the $250m bond due in December. In customer management, live-agent operations continued to improve, our recent Intervoice acquisition contributed positively. In information management, we continued to find ways to reduce costs and invest in our high value, modular Infinys platform to win new clients. Due to the economic slowdown, it is unlikely we will divest information management business in the near term.
For fiscal 2009 the company expects modest revenue growth in customer management and HR management and a decline in information management. It expects diluted EPS in the range of $0.90 to $1.10 and free cash flow of approximately $200m.
