Convergys lowers revenue forecast


Andrea Ayers, president and CEO of Convergys
BPO major Convergys Corporation today said its revenue reached $722 million (–2 percent) in the first quarter of 2016 — indicating lower revenue for the full year.

Convergys Corporation generated $365.2 million revenue from communications, $164.4 million from technology, $55.1 million from financial services and $137.5 from others.

Operating income rose 20 percent to $59 million. Operating margin was 8.2 percent, up 160 basis points compared with 6.6 percent. Net income of Convergys was $45 million compared with $39 million.

Andrea Ayers, president and CEO of Convergys, said: “Growth with several existing and new clients and progress in penetrating high-growth industries nearly offset increasing headwinds from macroeconomic factors and volatility in the communications industry.”

Convergys said the growth in revenue for 2016 will be approximate zero percent, revised from prior guidance to approximate 1 percent.

“Based on lower than anticipated volumes with some of our clients, we are slightly revising our revenue expectations, but our profit improvement expectations are unchanged and we are confirming our EBITDA and EPS guidance for the full year,” Andrea Ayers said.