Convergys Call Centers Lag in 3QCustomer relationship management provider Convergys Corp. sustained losses in its call center division during the third quarter because of poor economic conditions, the company said.
Third-quarter revenue for Convergys' Customer Management Group, which includes the company's teleservices unit, was $331.6 million, down 3 percent from the previous quarter. The decrease reflected weakness in the economy and client cutbacks after the Sept. 11 terrorist attacks.
The group's revenue from communications clients fell $16 million during the third quarter, but the decrease was partially offset by a $10 million increase in revenue from technology clients. Also, Convergys recently won new and expanded customer service contracts with Internet services provider AT&T Broadband and Schering Laboratories, the U.S. prescription pharmaceutical marketing arm of Schering-Plough Corp.
During the third quarter, Convergys launched a restructuring program for its teleservices group, taking a $53.3 million one-time charge as a result. The company said the restructuring involved the reduction of its low-efficiency, high-cost call center capacities.
However, the company's overall revenue for the third quarter was $567.2 million, a 2 percent rise from the previous quarter. Convergys' Information Management Group, which includes its billing, software and administrative unit, had a strong performance in the quarter.
For 2002, the company projected revenue increases of 13 percent in its IMG unit and 7 percent for its CMG unit.