Sykes Enterprises Inc. (SYKE, Financial) filed Quarterly Report for the period ended 2010-09-30.
Sykes Enterprises Inc. has a market cap of $704.3 million; its shares were traded at around $16.69 with a P/E ratio of 13.2 and P/S ratio of 0.8. Sykes Enterprises Inc. had an annual average earning growth of 106.5% over the past 5 years.SYKE is in the portfolios of Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, Pioneer Investments.
On a reporting segment basis, direct salaries and related costs from the Americas segment increased $67.0 million, or 72.5%, to $159.3 million for the three months ended September 30, 2010 from $92.3 million for the comparable 2009 period. Direct salaries and related costs from the EMEA segment decreased $1.5 million, or 3.5%, to $40.6 million for the three months ended September 30, 2010 from $42.1 million for the comparable 2009 period. While changes in foreign currency exchange rates positively impacted revenues in the Americas they negatively impacted direct salaries and related costs in 2010 compared to the same period in 2009 by $3.6 million. While changes in foreign currency exchange rates negatively impacted revenues in the EMEA they positively impacted direct salaries and related costs in 2010 compared to the same period in 2009 by $3.2 million.
On a reporting segment basis, general and administrative expenses from the Americas segment increased $33.5 million, or 103.2%, to $65.9 million for the three months ended September 30, 2010 from $32.4 million for the comparable 2009 period. General and administrative expenses from the EMEA segment increased $0.1 million, or 0.6%, to $14.7 million for the three months ended September 30, 2010 from $14.6 million for the comparable 2009 period. While changes in foreign currency exchange rates positively impacted revenues in the Americas they negatively impacted general and administrative expenses in 2010 compared to the same period in 2009 by approximately $1.1 million. While changes in foreign currency exchange rates negatively impacted revenues in EMEA, they positively impacted general and administrative expenses in 2010 compared to the same period in 2009 by approximately $1.1 million. Corporate general and administrative expenses decreased $1.6 million, or 14.8%, to
$9.4 million for the three months ended September 30, 2010 from $11.0 million in the comparable 2009 period. This decrease was primarily attributable to lower compensation costs of $2.7 million, lower accounting fees costs of $0.4 million and lower consulting costs of $0.3 million, partially offset by higher ICT acquisition-related costs of $1.5 million (primarily lease termination costs) and higher other costs of $0.3 million.
As a result of the foregoing, we reported income from operations for the three months ended September 30, 2010 of $13.1 million, compared to $20.7 million in the comparable 2009 period. This decrease of $7.6 million was principally attributable to a $65.5 million increase in direct salaries and related costs, a $32.0 million increase in general and administrative expenses, a $3.6 million increase in impairment of goodwill, intangibles and other long-lived assets, partially offset by a $93.5 million increase in revenues. This $7.6 million decrease, $0.7 million increase in other expense, net, $0.2 million decrease in interest income, $1.4 million increase in interest expense, partially offset by a favorable $4.7 million net change in tax provision resulted in net income of $13.6 million for the three months ended September 30, 2010, a decrease of $5.2 million compared to the same period in 2009.
The increase in the Americas revenue was $270.6 million, or 60.9%, for the nine months ended September 30, 2010, compared to the same period in 2009. Excluding the ICT revenues of $264.0 million, the Americas revenue for the nine months ended September 30, 2010, compared to the same period in 2009 increased $6.6 million. The $6.6 million increase consists of a positive foreign currency translation impact of $19.0 million and a favorable foreign currency hedging fluctuation of $10.9 million, partially offset by a $23.3 million decrease in revenues principally due to expiration of certain client programs and lower than forecasted demand within certain clients. Revenues from our offshore operations represented 50.2%, or 57.5% excluding ICT revenues, of Americas revenues for the nine months ended September 30, 2010, compared to 60.8% for the comparable 2009 period.
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Sykes Enterprises Inc. has a market cap of $704.3 million; its shares were traded at around $16.69 with a P/E ratio of 13.2 and P/S ratio of 0.8. Sykes Enterprises Inc. had an annual average earning growth of 106.5% over the past 5 years.SYKE is in the portfolios of Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, Pioneer Investments.
Highlight of Business Operations:
The increase in the Americas revenue was $101.0 million, or 66.0%, for the three months ended September 30, 2010, compared to the same period in 2009. Excluding the ICT revenues of $100.8 million, the Americas revenue for the three months ended September 30, 2010, increased $0.2 million compared to the same period in 2009. The $0.2 million increase consists of a positive foreign currency translation impact of $4.5 million and favorable foreign currency hedging fluctuations of $3.4 million, partially offset by a $7.7 million decrease in revenues principally due to expiration of certain client programs and lower than forecasted demand within certain clients. Revenues from ourOn a reporting segment basis, direct salaries and related costs from the Americas segment increased $67.0 million, or 72.5%, to $159.3 million for the three months ended September 30, 2010 from $92.3 million for the comparable 2009 period. Direct salaries and related costs from the EMEA segment decreased $1.5 million, or 3.5%, to $40.6 million for the three months ended September 30, 2010 from $42.1 million for the comparable 2009 period. While changes in foreign currency exchange rates positively impacted revenues in the Americas they negatively impacted direct salaries and related costs in 2010 compared to the same period in 2009 by $3.6 million. While changes in foreign currency exchange rates negatively impacted revenues in the EMEA they positively impacted direct salaries and related costs in 2010 compared to the same period in 2009 by $3.2 million.
On a reporting segment basis, general and administrative expenses from the Americas segment increased $33.5 million, or 103.2%, to $65.9 million for the three months ended September 30, 2010 from $32.4 million for the comparable 2009 period. General and administrative expenses from the EMEA segment increased $0.1 million, or 0.6%, to $14.7 million for the three months ended September 30, 2010 from $14.6 million for the comparable 2009 period. While changes in foreign currency exchange rates positively impacted revenues in the Americas they negatively impacted general and administrative expenses in 2010 compared to the same period in 2009 by approximately $1.1 million. While changes in foreign currency exchange rates negatively impacted revenues in EMEA, they positively impacted general and administrative expenses in 2010 compared to the same period in 2009 by approximately $1.1 million. Corporate general and administrative expenses decreased $1.6 million, or 14.8%, to
$9.4 million for the three months ended September 30, 2010 from $11.0 million in the comparable 2009 period. This decrease was primarily attributable to lower compensation costs of $2.7 million, lower accounting fees costs of $0.4 million and lower consulting costs of $0.3 million, partially offset by higher ICT acquisition-related costs of $1.5 million (primarily lease termination costs) and higher other costs of $0.3 million.
As a result of the foregoing, we reported income from operations for the three months ended September 30, 2010 of $13.1 million, compared to $20.7 million in the comparable 2009 period. This decrease of $7.6 million was principally attributable to a $65.5 million increase in direct salaries and related costs, a $32.0 million increase in general and administrative expenses, a $3.6 million increase in impairment of goodwill, intangibles and other long-lived assets, partially offset by a $93.5 million increase in revenues. This $7.6 million decrease, $0.7 million increase in other expense, net, $0.2 million decrease in interest income, $1.4 million increase in interest expense, partially offset by a favorable $4.7 million net change in tax provision resulted in net income of $13.6 million for the three months ended September 30, 2010, a decrease of $5.2 million compared to the same period in 2009.
The increase in the Americas revenue was $270.6 million, or 60.9%, for the nine months ended September 30, 2010, compared to the same period in 2009. Excluding the ICT revenues of $264.0 million, the Americas revenue for the nine months ended September 30, 2010, compared to the same period in 2009 increased $6.6 million. The $6.6 million increase consists of a positive foreign currency translation impact of $19.0 million and a favorable foreign currency hedging fluctuation of $10.9 million, partially offset by a $23.3 million decrease in revenues principally due to expiration of certain client programs and lower than forecasted demand within certain clients. Revenues from our offshore operations represented 50.2%, or 57.5% excluding ICT revenues, of Americas revenues for the nine months ended September 30, 2010, compared to 60.8% for the comparable 2009 period.
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