News
Convergys reported that third-quarter revenue was down, and that it would have posted a profit had it not taken a write down associated with its HR Management business. The company said it continues to evaluate the sale of one of its business lines.
The company recorded revenue of $676.2 million, down from $703.7 million in the like period last year. Its loss was $140 million, compared with net income of $41.8 million in Q3 2007. The charge that swung the company into the red was a $272.9 million pretax write down of deferred charges related to HR Management contracts.
On the positive side, revenue for its Customer Management and Information Management segments – both significantly larger than the HR Management business – were up.
David Dougherty, president and CEO of Convergys, said: “We continue the evaluation of a potential separation of the Information Management business against the backdrop of the current credit markets and currently expect to provide an update after the first of the year. In HR Management, we continue to make progress with our two large HR outsourcing implementations; however, our financial results are not satisfactory. As a result, we are taking a series of actions to reduce the implementation risk and improve the future earnings and cash flow in this business.”
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