Sykes HealthPlan Services Postpones IPO

Share this content:
Citing unfavorable market conditions for initial public offerings, Tampa-based Sykes Enterprises, Inc. and HealthPlan Services Corp., each owners of 50 percent of the outstanding common stock of Sykes HealthPlan Services, Inc. have postponed plans it released in April to go public. The Louisville, Kentucky-based SHPS is a provider of outsourced care management services and products.


The deferral coincides with mixed earnings results for the two companies. While Sykes reported strong results, Healthplan Services, a provider of distribution, employer services, and medical loss ratio management, reported net income of $223,000, or 2 cents per share substantially below the 16 cents per share reported in the second quarter of 1997.


Record earnings were reported for Sykes, a provider of integrated business services to the information technology industry. The company reported record net income and revenue of $7.9 million, or 20 cents per diluted share, and $100.8 million, respectively, for the second quarter ended June 30, 1998. Driven by continued strong growth in its core business of technical product support, earnings increased 63 percent from net income of $4.8 million, or 12 cents per diluted share for the same period in 1997, exclusive of one-time charges.


According to analysts, although Sykes is doing well, with good results for the quarter, it doesn't make sense for the company to enter into the difficult small cap IPO market, especially at a time when SHPS reports disappointing financial results.


SHPS it is only a small part of what Sykes does, analysts said. "They can afford to wait till they get the right price."
Loading links....

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here