Convergys Reports Second Quarter Results
August 09, 2010 04:18 PM Eastern Daylight Time
CINCINNATI--(EON: Enhanced Online News)--Convergys Corporation (NYSE: CVG):
l Revenue from continuing operations of $528 million;
l Consolidated GAAP diluted EPS of $0.22; Non-GAAP EPS from continuing operations of $0.19; GAAP
EPS from continuing operations of $0.09;
l Adjusted free cash flow of $79 million, including $13 million from Cellular Partnerships;
l Net debt of $36 million at June 30, 2010;
l Tightened 2010 full-year guidance.
Convergys Corporation (NYSE: CVG), a global leader in relationship management, today announced its financial
results for the second quarter of 2010. Revenue from continuing operations was $528 million. Total consolidated
GAAP earnings was $27 million net income (discontinued and continuing operations), or $0.22 per diluted share.
GAAP income from continuing operations was $11 million, or $0.09 per diluted share; non-GAAP income from
continuing operations was $24 million, or $0.19 per diluted share. In the second quarter of 2010, adjusted free cash
flow was $79 million, including $13 million from the Cellular Partnerships.
“We generated strong cash flow from operations and substantially completed the sale of our HR Management
business in the second quarter,” said Jeff Fox, President and CEO of Convergys. “Customer Management revenue
and profitability came in slightly below our expectations due to continued volume weakness at the beginning of the
quarter. We are encouraged by solid new business signings with existing and new clients and expect profit
improvement in the third and fourth quarters. The Information Management business remained on track in the second
quarter, achieving a double-digit operating margin. We successfully went live with our smart-meter billing solution for
a large utilities company, and the investment in our technology and distribution capabilities is paying off with key
client wins in the communications industry.”
Fox continued, “We